comprehensive annual financial report · el paso county received the certificate of achievement for...

Comprehensive Annual Financial Report For the year ended December 31, 2014

El Paso County, Colorado

Prepared by Budget Administration, Finance Division

Cover photos Fire and Flood Recovery

El Paso County 2014

EL PASO COUNTY, COLORADO

COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year ended

December 31, 2014

Prepared by: Budget Administration,

Finance Division

EL PASO COUNTY, COLORADO

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2014

TABLE OF CONTENTS

I. INTRODUCTORY SECTION

Transmittal Letter.......................................................................................................................................... 8 Awards and Acknowledgements................................................................................................................... 10 Elected and Appointed Officials................................................................................................................... 11 District Map................................................................................................................................................... 12 Organizational Chart..................................................................................................................................... 13

II. FINANCIAL SECTION

Independent Auditors' Report....................................................................................................................... 15 Management’s Discussion and Analysis....................................................................................................... 19 Financial Highlights............................................................................................................................................................... 19 Using this Annual Report...................................................................................................................................................... 20 Financial Analysis of the County as a Whole..................................................................................................................... 22 Financial Analysis of the County's Funds........................................................................................................................... 28 Capital Assets and Debt Administration............................................................................................................................ 30 Contacting the County's Financial Management............................................................................................................... 31 Basic Financial Statements............................................................................................................................ 33 Government-Wide Financial Statements............................................................................................................................ 34 Statement of Net Position............................................................................................................................................... 35 Statement of Activities..................................................................................................................................................... 36 Fund Financial Statements.................................................................................................................................................... 37 Governmental Funds....................................................................................................................................................... 38 Balance Sheet............................................................................................................................................................... 38 Reconciliation of the Balance Sheet to the Statement of Net Position.............................................................. 39 Statement of Revenues, Expenditures, and Changes in Fund Balances............................................................ 40 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities....................................................................................... 41 Proprietary Funds............................................................................................................................................................. 42 Statement of Net Position - Proprietary Funds..................................................................................................... 42 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds.................................. 43 Statement of Cash Flows - Proprietary Funds....................................................................................................... 44 Fiduciary Funds................................................................................................................................................................. 45 Statement of Net Position - Fiduciary Funds......................................................................................................... 45 Statement of Changes in Net Position - Fiduciary Funds.................................................................................... 46 Notes to Financial Statements.............................................................................................................................................. 47

Note A – Summary of Significant Accounting Policies....................................................................................... 48 Note B – Stewardship, Compliance, and Accountability..................................................................................... 57 Note C – Detailed Notes on All Funds.................................................................................................................. 59 Note D – Other Information................................................................................................................................... 71

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EL PASO COUNTY, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED DECEMBER 31, 2014

Required Supplementary Information.......................................................................................................... 79 Schedule of Revenue, Expenditures, and Changes in Fund Balances - Budget and Actual....................................... 81 General Fund.................................................................................................................................................................... 81 Road and Bridge Fund..................................................................................................................................................... 83 Human Services Fund...................................................................................................................................................... 84 Budgetary Comparison Schedule Budget-to-GAAP Reconciliation.............................................................................. 86 Schedule of Funding Progress for the El Paso County Postemployment Healthcare Plan....................................... 88 Special Revenue Funds.......................................................................................................................................................... 89 Conservation Trust Fund................................................................................................................................................ 90 Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual....................... 90 Major Governmental Funds................................................................................................................................................. 91 Capital Projects Fund....................................................................................................................................................... 92 Schedules of Revenue, Expenditures, and Changes in Fund Balances - Budget and Actual......................... 92 Proprietary Funds................................................................................................................................................................... 94 Solid Waste Management Schedules of Revenue, Expenditures, and Changes in Fund Balances - Budget and Actual......................... 94 Self Insurance Fund Schedules of Revenue, Expenditures, and Changes in Fund Balances - Budget and Actual......................... 95 Fiduciary Funds...................................................................................................................................................................... 96 Private-Purpose Trust Funds.......................................................................................................................................... 96 School Trust Fund Schedules of Revenue, Expenditures, and Changes in Fund Balances - Budget and Actual......................... 97 Agency Funds......................................................................................................................................................................... 98 Combining Statement of Net Position.......................................................................................................................... 98 Combining Statement of Changes in Assets and Liabilities...................................................................................... 99 Schedules of Revenue, Expenditures, and Changes in Net Position - Budget and Actual................................... 102

Rancho Colorado Agency Fund............................................................................................................................... 102 Falcon Vista Acquisition LID................................................................................................................................... 103 Public Improvement Districts Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual............................ 104 Miscellaneous................................................................................................................................................ 106 Schedule of EBT Authorizations, Warrant Expenditures, and Total Expenditures................................................... 107 Local Highway Finance Report............................................................................................................................................ 108

III. STATISTICAL SECTION Financial Trends............................................................................................................................................ 112 Net Position by Component................................................................................................................................................ 114 Changes in Net Position........................................................................................................................................................ 116

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EL PASO COUNTY, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED DECEMBER 31, 2014 Fund Balances, Governmental Funds................................................................................................................................. 120 Changes in Fund Balances, Governmental Funds............................................................................................................ 122 Revenue Capacity.......................................................................................................................................... 124 Assessed Value and Actual Value of Taxable Property.................................................................................................... 126 Direct and Overlapping Property Tax Rates..................................................................................................................... 128 General Fund Property Tax Levies and Collections......................................................................................................... 130 Property Taxes by Fund........................................................................................................................................................ 132 Principal Sales Tax Payers..................................................................................................................................................... 134 Sales and Use Tax Collections by State Category.............................................................................................................. 135 Debt Capacity................................................................................................................................................ 136 Ratios of Outstanding Debt by Type.................................................................................................................................. 137 Demographic and Economic Information.................................................................................................... 139 Demographic and Economic Statistics............................................................................................................................... 140 Principal Employers............................................................................................................................................................... 142 Operating Information.................................................................................................................................. 143 Full-time Equivalent County Employees by Function/Program................................................................................... 144 Operating Indicators by Function/Program...................................................................................................................... 146 Capital Assets Statistics by Function/Program................................................................................................................. 148

iii

I. INTRODUCTORY SECTION

BUDGET ADMINISTRATION BUDGET, FINANCE, ECONOMIC DEVELOPMENT, AND PUBLIC INFORMATION

NICOLA SAPP, COUNTY BUDGET OFFICER

COMMISSIONERS DENNIS HISEY, CHAIR AMY LATHEN, VICE CHAIR

SALLIE CLARK DARRYL GLENN

PEGGY LITTLETON

COLORADO SPRINGS, CO 80903 FAX: (719) 520-6486

200 S. CASCADE AVENUE, SUITE 150 OFFICE: (719) 520-6400

WWW.ELPASOCO.COM

May 28, 2015

Transmittal Letter

To the Board of County Commissioners and Citizens of El Paso County:

State law requires that every general-purpose local government publish a complete set of audited financial statements annually. Publishing of this report is to fulfill that requirement for the fiscal year ended December 31, 2014.

Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal controls established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute assurance that the financial statements are free of any material misstatements.

Rubin Brown issued an unmodified (“clean”) opinion on El Paso County’s financial statements for the year ended December 31, 2014. The independent auditors report is located at the front of the financial section of this report.

Management’s discussion and analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it.

Profile of the Government El Paso County, incorporated in 1861 and located in the central part of the state, is one of the top growth areas in both the state and the country. The 2014 population estimates from the Colorado Department of Local Affairs has El Paso County’s population estimated at 665,891. El Paso County continues to be ranked as the largest population county in the State. El Paso County occupies 2,158 square miles and is empowered to levy a property tax on both real and personal property located within its boundaries. El Paso County operates under the County Administrator-County Commissioner form of government. Policy-making and legislative authority are vested in a governing Board of County Commissioners (BoCC) consisting of the Chair, Vice Chair, and three other members. The BoCC appoints the government’s manager, who in turn appoints the heads of various departments. BoCC members serve four-year terms. The BoCC consists of five elected members, one from each district within the County.

El Paso County provides a full range of services, including Sheriff Operations; District Attorney Offices; Department of Human Services; the construction and maintenance of highways, streets, and other infrastructure; and recreational and cultural activities. El Paso County is also accountable for a legally and separate Health Department and Housing Authority, both of which are reported separately within El Paso County’s financial statements.

Comprehensive Annual Financial Report for the Year Ended December 31, 2014 9

The BoCC is required to adopt a final budget by no later than the close of the fiscal year. This annual budget serves as the foundation for El Paso County’s financial planning and control. The budget is prepared by fund, function (e.g., public safety), and department (e.g., Sheriff Operations). Department heads may transfer resources within or between departments as they see fit. Transfers between funds, however, need special approval from the governing commissioners.

Local economy Major industries located within El Paso County’s boundaries, or in close proximity, include several military bases and their related supporting operations, semiconductor companies, automobile dealers, large retailers, as well as several financial institutions, religious organizations, and insurance companies. Long-term financial planning The five year budget forecast for El Paso County shows conservative growth in core revenue sources to include sales and use tax, property tax, and fees. This, coupled with conservative spending, has enabled the County to build an operational savings to be used for budget balancing purposes and cash flows. Because of the decreased assessed values of property taxes, it is predicted that this reserve will be sufficient until 2015 at which time the revenues are expected to exceed expenditures on-going. The $45 million of budget reductions between 2006 and 2009 and being fiscally prudent since 2009 allowed the operational savings to increase and no further budget reductions had to be implemented during 2014. Budget Administration continues to assist the BoCC in addressing the funding needs and decreasing property tax revenues in an effort to fund the County at adequate levels. Major initiatives During 2010, El Paso County moved forward with our Strategic Moves Initiative that included the purchase of a large commercial property, repurposed that property and created our new Citizen Services Center. In addition, several other County facilities were repurposed. This purchase and repurposing reduced El Paso County’s critical capital needs from $385 million to just under $200 million. As of the end of 2014, the multiyear Strategic Moves Initiatives were complete. El Paso County is in the process of updating the master plan that will outline the current and future capital infrastructure needs. Fire and flood recovery and mitigation were high priorities for El Paso County in 2014. While Federal funds through both the Federal Emergency Management Agency (FEMA) and the Natural Resources Conservation Service (NRCS) have been allocated to El Paso County, it has become a full-time operation to coordinate the work and the funding sources to address both prior incidents and be prepared for any future incidents, such as subsequent flooding events. Awards and Acknowledgements El Paso County received the Certificate of Achievement for Excellence in Financial Reporting award from the Government Finance Officers Association (GFOA) for the years 1990 through 1999, 2005 through 2008 and 2010 through 2013. In order to be rewarded a Certificate of Achievement; the government had to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR will meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for the certificate. The preparation of this report would not have been possible without the efficient and dedicated service of the entire staff of Budget Administration. We wish to express our appreciation to all members of this department who assisted and contributed to the preparation of this report. Credit must be given to the governing Board of County Commissioners for their unwavering support for maintaining the highest standards of professionalism in the management of El Paso County’s finances.

Respectfully Submitted,

Nicola J. Sapp Jeffrey H. Greene Nicola J. Sapp Jeffrey H. Greene Budget Officer County Administrator

Government Finance Officers Association

Certificate of Achievement

for Excellence in

Financial Reporting

Presented to

El Paso County

Colorado

For its Comprehensive Annual Financial Report

for the Fiscal Year Ended

December 31, 2013

Executive Director/CEO


El Paso County Colorado Elected and Appointed Officials

December 31, 2014

Commissioners

Chair

Dennis Hisey - District 4

Vice Chair

Amy Lathen - District 2

Commissioner

Sallie Clark - District 3

Commissioner

Darryl Glenn - District 1

Commissioner

Peggy Littleton - District 5

Elected Officials Assessor

Mark Lowderman

Clerk and Recorder

Wayne Williams

Coroner

Dr. Robert C. Bux

District Attorney

Dan May

Sheriff

Terry Maketa

Surveyor

Lawrence Burnett

Treasurer

Robert Balink

State Appointed Officials

Public Trustee Thomas S. Mowle

Board of County Commissioners Appointed Officials

County Administrator

Jeffrey H. Greene

County Attorney

Amy R. Folsom

CEO, Pikes Peak Workforce Center

Charlie Whelan


II. FINANCIAL SECTION

RubinBrown LLP

Certified Public Accountants

& Business Consultants

1900 16th Street

Suite 300

Denver, CO 80202

T 303.698.1883

F 303.777.4458

W rubinbrown.com

E [email protected]

Independent Auditors’ Report

Board of County Commissioners

El Paso County

Colorado Springs, Colorado

Report On The Financial Statements

We have audited the accompanying financial statements of the governmental activities,

the business-type activities, the aggregate discretely presented component units, each

major fund and the aggregate remaining fund information of El Paso County, Colorado

(the County), as of and for the year ended December 31, 2014, and the related notes to

the financial statements, which collectively comprise the County’s basic financial

statements as listed in the table of contents.

Management’s Responsibility For The Financial Statements

Management is responsible for the preparation and fair presentation of these financial

statements in accordance with accounting principles generally accepted in the United

States of America; this includes the design, implementation and maintenance of

internal control relevant to the preparation and fair presentation of financial

statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express opinions on these financial statements based on our

audit. We did not audit the financial statements of the El Paso County Retirement

Plan, which is reported as the pension trust fund, and the financial statements of the

El Paso County Housing Authority, which represents 69% of assets, 80% of net position

and 4% of revenues of the discretely presented component units. Those statements were

audited by other auditors whose reports thereon have been furnished to us, and our

opinion, insofar as it relates to the amounts included for the El Paso County Retirement

Plan and the El Paso County Housing Authority, is based solely on the reports of the

other auditors. We conducted our audit in accordance with auditing standards generally

accepted in the United States of America and the standards applicable to financial

audits contained in Government Auditing Standards, issued by the Comptroller General

of the United States. The financial statements of the El Paso County Retirement Plan

and the El Paso County Housing Authority were not audited in accordance with

Government Auditing Standards. Those standards require that we plan and perform

the audit to obtain reasonable assurance about whether the financial statements are

free from material misstatement.




An audit involves performing procedures to obtain audit evidence about the amounts

and disclosures in the financial statements. The procedures selected depend on the

auditors’ judgment, including the assessment of the risks of material misstatement of

the financial statements, whether due to fraud or error. In making those risk

assessments, the auditor considers internal control relevant to the entity’s preparation

and fair presentation of the financial statements in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the entity’s internal control. Accordingly, we express no

such opinion. An audit also includes evaluating the appropriateness of accounting

policies used and the reasonableness of significant accounting estimates made by

management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to

provide a basis for our audit opinions.

Opinions

In our opinion, based on our audit and the reports of other auditors, the financial

statements referred to above present fairly, in all material respects, the respective

financial position of the governmental activities, the business-type activities, the

aggregate discretely presented component units, each major fund and the aggregate

remaining fund information of the County as of December 31, 2014 and the respective

changes in financial position and, where applicable, cash flows thereof for the year then

ended in accordance with accounting principles generally accepted in the United States

of America.

Emphasis Of Matters

As discussed in Note D-3, the County adopted the provisions of Governmental

Accounting Standards Board Statement No. 67, Financial Reporting for Pension Plans,

effective January 1, 2014. Our opinion was not modified with respect to this matter.

As discussed in Note A-4I to the financial statements, certain activity reported in

special revenue funds was restated to be reported in the General Fund and the Other

Post Employment Benefit liability was removed from the Self Insurance Fund to be

reported in the government-wide financial statements. Accordingly, amounts reported

as General Fund, Road and Bridge, Other Governmental Funds fund balance and the

Self Insurance Service Fund Net Position as of January 1, 2014, have been restated to

change the financial reporting of these activities. Our opinion is not modified with

respect to this matter.




Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules and the

schedule of funding progress, on pages 19 - 31, 79 - 87 and 88, respectively, be presented to supplement the basic financial statements. Such information, although not a part of

the basic financial statements, is required by the Governmental Accounting Standards Board, which considers it to be an essential part of financial reporting for placing the

basic financial statements in an appropriate operational, economic or historical context. We and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in

the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency

with management’s responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not

express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The

combining and individual fund financial statements and schedules; the Local Highway Finance Report; the Schedule of EBT Authorizations, Warrant Expenditures, Total

Expenditures and introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual fund financial statements and schedules; the Local Highway Finance Report and the Schedule of EBT Authorizations, Warrant

Expenditures and Total Expenditures are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the

auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to

the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United

States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above and the reports of the other auditors, the

combining and individual fund financial statements and schedules; the Local Highway Finance Report and the Schedule of EBT Authorizations, Warrant Expenditures and

Total Expenditures are fairly stated, in all material respects, in relation to the basic financial statements as a whole.




The introductory and statistical sections have not been subjected to the auditing

procedures applied in the audit of the basic financial statements, and accordingly, we do

not express an opinion or provide any assurance on them.

Other Reporting Required By Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report

dated May 28, 2015 on our consideration of the County’s internal control over financial

reporting and on our tests of its compliance with certain provisions of laws, regulations,

contracts and grant agreements and other matters.

The purpose of that report is to describe the scope of our testing of internal control over

financial reporting and compliance and the results of that testing, and not to provide an

opinion on internal control over financial reporting or on compliance. That report is an

integral part of an audit performed in accordance with Government Auditing Standards

in considering the County’s internal control over financial reporting and compliance.

May 28, 2015


Management’s Discussion and Analysis

(Un-audited) El Paso County’s (the “County”) discussion and analysis is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the County’s financial activity, (c) identify changes in the County’s financial position (its ability to address the next and subsequent year challenges), (d) identify any material deviations from the financial plan (the approved budget), and (e) identify individual fund issues or concerns. The discussion and analysis of El Paso County's financial performance provides an overview of the County’s financial activities for the fiscal year ended December 31, 2014. Please read it in conjunction with the County’s financial statements, which begin on page 32, as well as the transmittal letter.

Financial Highlights

The County’s total assets and deferred outflows of resources decreased $3.5 million in comparison to 2013. A majority of this decrease is in the cash and investments area with a planned decrease of $6.1 million.

The County's total liabilities and deferred inflows of resources remained relatively unchanged from

2013, decreasing only $0.3 million.

In comparing the 2014 Statement of Activities to 2013, general tax revenues increased $4.6 million. The most significant portion of this increase is a $3.9 million increase in sales tax collections. This increase was projected in the 2014 budget.

Governmental expenditures increased $7.3 million in comparison to 2013. The County continued to use conservative budget and spending practices during 2014. Public Safety expenditures increased $11.9 million, as the County spent restricted, voter approved Public Safety Sales Taxes and funded fire and flood recovery projects.

The County’s total governmental fund balance decreased $1.7 million during 2014. This was due to

small increases in Road and Bridge, Human Services, Capital Funds and planned spending into General Fund.

The County made changes in how they accounted for funds in 2014. Several funds which used to be

separate non-major special revenue funds are now accounted for in the General Fund. The funds which were moved into General Fund are Economic Development, Fleet Management, Retirement Contribution and Pikes Peak Workforce Center.


Using this Annual Report

The following graphic is provided to outline the composition of the financial statements.

Management Discussion and Analysis

(required supplementary information)

Government-wide financial statements Fund financial statements

Notes to the financial statements

Required supplementary information (other than MD&A)

This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the County as a whole and present a longer-term view of the County’s finances. For governmental activities, these statements tell how these services were financed in the short-term as well as what remains for future spending. Fund financial statements also report the County’s operations in more detail than the government-wide statements by providing information about the County’s most significant funds. The remaining statements provide financial information about activities for which the County acts solely as a trustee or agent for the benefit of those outside of the government. Government-wide Statements The government-wide statements report information about the County as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the government’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. These two government-wide statements report the County’s net position and how it has changed. You can think of the County’s net position, the difference between assets and liabilities, as one way to measure the County’s financial health, or financial position. Over time, increases or decreases in net position may serve as a useful indicator of whether the

financial health of the County is improving or deteriorating, respectively. To assess the overall financial health of the County, you will need to consider additional non-

financial factors, such as changes in the County’s property tax base and the condition of the County’s roads.

The government-wide financial statements of the County are divided into three categories: Governmental activities - Most of the County’s basic services are included here, such as sheriff,

public works, health and welfare, auxiliary services and general administration. Taxes and intergovernmental revenues finance most of these activities.

Business-type activities - The County charges fees to customers to help it cover the costs of

certain services it provides. The County’s Solid Waste Management is included here.


Component units - The County includes four other entities in its report:

The El Paso County Retirement Plan exists for the purpose of being a cost sharing, multiple-

employer benefit plan for all full-time employees.

The El Paso County Facilities Corporation exists as a nonprofit corporation under the laws of the State of Colorado which was organized to acquire real estate, property and improvements for lease to the County and, upon the prior approval of a majority of the memberships of the Board of County Commissioners of the County, to borrow money and to become indebted and to execute and deliver bonds, notes, and debentures to evidence such indebtedness, for the purpose of acquiring such real personal property, constructing or installing such improvements, and for such other purposes as may be necessary to accomplish the objectives of the Corporation.

El Paso County Public Health is a quasi-municipal organization organized by authority of

State Statutes and Resolution of the County Commissioners.

The El Paso County Housing Authority was established by the Commissioners and exists in order to help promote availability of decent, safe, and sanitary dwelling accommodations in the County to low-income families.

Fund Financial Statements

The fund financial statements provide more detailed information about the County’s most significant funds-not the County as a whole. Funds are accounting devices that the County uses to keep track of specific sources of funding and spending for particular purposes.

Some funds are required by State law and by bond covenants.

The Board of County Commissioners establishes other funds to control and manage money

for particular purposes or to show that it is properly using certain taxes and grants. The County has three types of funds:

Governmental funds - Most of the County’s basic services are included in the governmental funds, which focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the County’s programs. Because this information does not encompass the additional long-term focus of the government-wide statements, additional information is provided at the bottom of the governmental funds statements, or on the subsequent page, that explains the relationship (or differences) between them. Proprietary funds - Services for which the County charges customers a fee are generally reported in proprietary funds. Proprietary funds, like the government-wide statements, provide both long-term and short-term financial information.

Enterprise funds are the same as its business-type activities, but provide more detail and

additional information, such as cash flows. El Paso County's Enterprise fund consists of Solid Waste Management.


Internal Service funds are used to report activities that provide supplies and services for the County’s other programs and activities. El Paso County's only internal service fund is the Self Insurance Internal Service Fund.

Fiduciary funds - The County is the trustee, or fiduciary for other assets that, because of a trust arrangement, can be used only for the trust’s beneficiaries. The County is responsible for ensuring that the assets reported in these funds are used for their intended purposes. All of the County’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. These activities are excluded from the County’s government-wide financial statements because the County cannot use these assets to finance its operations.

Notes to the Financial Statements

The notes to the financial statements provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements.

Other Information

In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information (RSI) concerning El Paso County's General Fund, Road and Bridge Fund, and Human Services Fund Budget to Actual information, a Budget-to-GAAP Reconciliation, as well as a schedule of funding progress for the OPEB benefits to our employees. The combining statements are presented immediately following the RSI.

Financial Analysis of the County as a Whole

The General Fund is the County’s primary operating fund, accounting for all financial resources of the general government, except those required to be accounted for in other funds. At the end of the current fiscal year, the unrestricted (committed, assigned and unassigned) fund balance of the General Fund was $13.1 million. This is $7.8 million lower than 2013 due to El Paso County’s planned spending into fund balance during 2014 and the completion of several projects which were committed and assigned funds as of December 2013. The unrestricted fund balance is 11.5% of 2015 budgeted unrestricted operating expenditures, which is less than the approved Fund Balance Policy, due to planned spending into fund balance in order to address operations during the leanest of years for the County. In compliance with the County's approved fund balance policy, the 5-year budget projections increase the unrestricted fund balance level to the minimum required in the policy. Also included in General Fund Restricted Fund Balance is a reserve of $5.8 million which is restricted under state law (TABOR - Taxpayers Bill of Rights) as an emergency reserve. The remaining amount of the fund balance is restricted funds unavailable for the Board to appropriate other than their designated purposes. The Road and Bridge Fund accounts for construction and maintenance of County roads and bridges financed by property taxes, highway user fees, and other revenues restricted to use on roads and bridges. At the end of the current fiscal year, the unrestricted (committed and assigned) fund balance of the Road and Bridge Fund was $6.7 million, which is $0.5 million less than 2013. The fund had increased expenditures for capital projects which were postponed from 2013 to 2014 due to reassignment of resources to respond to the Black Forest Fire and several flooding events in 2013. The Human Services Fund accounts for the federal and state public welfare programs administered by the County and financed by grants, intergovernmental reimbursements, and sales taxes. There was a $1.5 million increase to fund balance due to conservative budget practices. Revenue in the Human Services Fund increased $6.5 million in 2014 as a result of additional grants and allocations from the State of Colorado and increased Medicaid funding from the Affordable Care Act.


The Capital Project Fund accounts for financial resources to be used for the acquisition or construction of major capital projects other than those financed by proprietary funds. $16.1 million of the $16.5 million fund balance is held in escrow, restricted externally to be used only for payments on our annual lease obligations. $430,410 is assigned for construction projects scheduled to be completed in 2015. The Capital Project Fund balance increased $1.5 million from 2013 due to capital lease revenue, which is a long term liability. Sales Tax Revenue in the governmental funds can appear to change significantly from year to year depending on how much sales and use tax revenue is allocated to our Internal Service Fund, which is not shown in the Government Wide financial statements. Sales Tax Revenue - Below is a table showing total sales tax collections for the County as a whole:

(in millions) 2014 2013

Governmental Funds

(excluding Public Safety) $ 71.9 $ 69.1 Public Safety 18.8 17.9

Self Insurance Fund 10.9 9.7 Total Sales and Use Tax $ 101.6 $ 96.7

Please see Schedule 10, Sales and Use Tax Collections by State Category in the Statistical Section of this report for more information.


Net Position - The County’s combined net position was $334.7 million in 2014. Looking at the net position and net expenses of governmental and business-type activities separately, however, two very different stories emerge. The following focuses on the net position and changes in net position of the County’s governmental and business-type activities.

El Paso County’s Net Position

(in millions)

Governmental Business-Type Total Primary Activities Activities Government

2014 2013 2014 2013 2014 2013 Current and other assets $ 132.5 $ 130.2 $ 0.7 $ 0.6 $ 133.1 $ 130.8 Capital assets 527.4 533.0 1.3 1.3 528.7 534.3 Total assets 659.9 663.2 2.0 1.9 661.8 665.1 Deferred outflows of resources Deferred loss on refunding 1.9 2.1 - - 1.9 2.1 Total deferred outflows of resources 1.9 2.1 - - 1.9 2.1 Long-term debt outstanding 254.5 260.2 - - 254.5 260.2 Other liabilities 29.4 25.0 0.1 0.1 29.5 25.1 Total liabilities 283.9 285.2 0.1 0.1 284.0 285.3 Deferred inflows of resources Deferred revenue-property taxes 45.1 44.1 - - 45.1 44.1 Total deferred inflows of resources 45.1 44.1 - - 45.1 44.1 Net position: Net investment in capital assets 378.6 378.8 1.3 1.3 379.9 380.1 Restricted 32.8 23.2 - - 32.8 23.2 Unrestricted (78.6) (66.0) 0.6 0.5 (78.0) (65.5)Total net position $ 332.8 $ 336.0 $ 1.9 $ 1.8 $ 334.7 $ 337.8

For detailed information please see the Statement of Net Position on page 33.

Normal Impacts

There are six basic (normal) transactions that will affect the comparability of the Statement of Net Position summary presentation to the fund financial statements. Net Results of Activities - which will affect (increase/decrease) current assets and unrestricted net position. Borrowing for Capital - which will increase current assets and long-term debt. Spending Borrowed Proceeds on New Capital - which will reduce current assets and increase capital assets. There is a second impact, an increase in invested in capital assets and an increase in related net debt, which will not change the net investment in capital assets. Spending of Non-Borrowed Current Assets on New Capital - which will (a) reduce current assets and increase capital assets and (b) will reduce unrestricted net position and increase net investment in capital assets. Principal Payment on Debt - which will (a) reduce current assets and reduce long-term debt and (b) reduce unrestricted net position and increase net investment in capital assets.


Reduction of Capital Assets through Depreciation - which will reduce capital assets and net investment in capital assets. The net position of the County’s governmental activities was $332.8 million for 2014. The largest portion of the County's net position, $378.6 million, reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, vehicles, and infrastructure), less any related outstanding debt that was used to acquire those assets. The County uses these capital assets to provide a variety of services to its citizens. Since all of these assets are tied up as capital, they are not available to finance day-to-day operations. Restricted net position of $32.8 million have limited purposes so are also not available to finance day-to-day operations. A portion of restricted net position is the TABOR requirement to maintain an "emergency reserve" in the amount of 3% of "fiscal year spending less debt service." This reserve can be used to meet any emergency except those caused by economic conditions, revenue shortfalls, and salary or fringe benefits increases. Accordingly, the amount of this emergency “reserve” at December 31, 2014 is $5.8 million. The unrestricted net position is the part of net position that can be used to finance day-to-day operations without constraints established by debt covenants, enabling legislation, or other legal requirements. Unrestricted net position shows a $78.6 million deficit at the end of the year. The largest portions of this deficit are the Other Post Employment Benefits (OPEB) liability of $77.3 million that we are required to show as well as the compensated absences liability of $17.7 million. The County pays its OPEB and compensated absences annually on a "Pay-as-you-go" basis. Removing the OPEB and compensated absences liabilities from the unrestricted net position results in a $16.3 million unrestricted balance. Changes in net position - The County’s total governmental revenues were $284.1 million for 2014. Approximately 11.7% of the County’s revenues come from charges for services, 34.9% from operating and capital grants, 15.3% from property taxes, 32.0% from sales taxes (after $10.9 million has been eliminated through the Internal Service Fund); and 6.1% from other taxes and revenues. The total cost of all governmental programs and services was $287.3 million. The ending net position decreased from 2013 by $3.2 million or 0.93%.


Changes in El Paso County’s Net Position

(in millions)

Governmental Business-Type Total Activities Activities Primary Government

2014 2013 2014 2013 2014 2013 REVENUES Program revenues

Charges for services $ 33.2 $ 36.3 $ 1.0 $ 1.0 $ 34.2 $ 37.3 Operating grants 84.6 70.9 0.1 - 84.7 70.9 Capital grants 14.5 9.6 - - 14.5 9.6

General revenues Property taxes 43.6 43.6 - - 43.6 43.6 Sales tax 90.8 87.0 - - 90.8 87.0 Other taxes 17.1 16.2 - - 17.1 16.2 Other revenues 0.3 0.3 - - 0.3 0.3

Total revenue 284.1 263.9 1.1 1.0 285.2 264.9 EXPENSES General government 68.2 58.2 - - 68.2 58.2 Public safety 102.4 90.5 - - 102.4 90.5 Public works 34.5 44.1 - - 34.5 44.1 Health and welfare 70.8 69.7 - - 70.8 69.7 Culture and recreation 3.4 3.3 - - 3.4 3.3 Auxiliary services 0.6 0.5 - - 0.6 0.5 Outside agencies - 5.9 1.0 1.0 1.0 6.9 Interest on long term debt 7.4 7.7 - - 7.4 7.7

Total expenses 287.3 279.9 1.0 1.0 288.3 280.9 Increase (decrease) in net

position before transfers (3.2) (16.0) 0.1 - (3.1) (16.0) Increase (decrease) in net

position (3.2) (16.0) 0.1 - (3.1) (16.0) Ending Net Position $ 332.8 $ 336.0 $ 1.9 $ 1.8 $ 334.7 $ 337.8

Governmental Activities There are eight basic impacts on revenues and expenses as reflected below. Revenues: Economic Condition - which can reflect a declining, stable or growing economic environment and has a substantial impact on property, sales, or other tax revenue as well as public spending habits for building permits, elective user fees and volumes of consumption. Increase/Decrease in Board approved fees - the County Commissioners have significant authority to impose and periodically increase/decrease fees.


Changing Patterns in Intergovernmental and Grant Revenue (both recurring and non-recurring) - certain recurring revenues (state revenue sharing, etc.) may experience significant changes periodically while non-recurring (or one-time) grants are less predictable and often distorting in their impact on year to year comparison. Market affects Investment Income - the County’s investment portfolio is managed using a variety of maturities and the market condition may cause investment income to fluctuate as a result. Expenses: Introduction of New Programs - within the functional expense categories, individual programs may be added or deleted to meet changing community needs. Change in Authorized Personnel - changes in services demand or decisions to outsource services may cause the Commissioners to increase/decrease authorized staffing. Salary increases (cost of living, merit and market place adjustment) - the ability to attract and retain trained and educated resources requires the County to strive to approach a competitive salary range position in the marketplace. Inflation - while overall inflation appears to be reasonably modest, the County is a major consumer of certain commodities such as chemicals and supplies, fuels, and parts. Some functions may experience unusual commodity specific increases. The table below presents the cost of each of the County’s four largest programs - public safety, public works, health and welfare and culture and recreation - as well as each program’s net cost (total cost less fees generated by the activities and intergovernmental aid). The net cost shows the financial burden that was placed on the County’s taxpayers by each of these functions. Some of the cost was paid by those who directly benefited from the programs, or other governments and organizations that subsidized certain programs with grants and contributions.

Net Cost of El Paso County's Governmental Activities

(in millions)

Net Cost Total Cost of Services (Revenue) of Services 2014 2013 2014 2013 Public safety $ 102.4 $ 90.5 $ 84.0 $ 72.1 Public works 34.5 44.1 19.0 33.8 Health and welfare 70.8 69.7 16.9 21.2 Culture and recreation 3.4 3.3 1.1 0.1 Total $ 211.1 $ 207.6 $ 121.0 $ 127.2

When comparing 2014 to 2013, Public Safety total cost of services increased $11.9 million due to expenditures of a voter approved Public Safety sales tax. $6.1 million of the decrease in Public Works total cost of services is due to moving Fleet services into General Government, where it used to be reflected in Public Works.


Financial Analysis of the County's Funds At the end of the County's year, governmental funds reported a fund balance of $56.8 million. This is a decrease from 2013 of $1.7 million. Included in this year’s total change in fund balance was a $1.7 million increase in the Road and Bridge Fund, a $1.5 million increase in the Human Services Fund, and a $1.5 million increase in the Capital Projects Fund. The General Fund decreased by $7.5 million. The overall decrease in governmental funds is largely due to the completion of projects started in 2013 and planned spending into the General Fund balance to balance the 2014 budget.

El Paso County Budgetary Highlights Over the course of the year, the El Paso County Commissioners revised the County’s General Fund Budget with a total of 154 resolutions for a net increase of $36,012,515. The largest budget resolutions follow and total $30,764,019. The remaining resolutions combined total is $5,248,496. Resolution 14-105 and 14-162 were approved in the amount of $16,424,429 to reappropriate to 2014

projects in process that were not yet completed and for purchases that have been ordered but not yet received. These purchases and projects were scheduled to be completed in 2014.

Resolution 14-124 was approved in the amount of $2,194,500 from the U.S. Department of

Agriculture, Natural Resources Conservation Service (NRCS) along with the State of Colorado Department of Public Safety, Division of Homeland Security and Emergency Management, to be used for flood mitigation and recovery for emergency watershed protection projects.

Resolution 14-177 was approved in the amount of $1,938,682 from the U.S. Department of Agriculture, Natural Resources Conservation Service (NRCS), to be used for emergency watershed protection measures to relieve hazards and damages created by the 2012 Waldo Canyon Fire.

Resolution. 15-174 was approved in the amount of $1,627,647 to adjust various General Fund

budgets for items that were unanticipated earlier in the fiscal year during the 2014 Original Adopted Budget process.

Resolution 14-219 was approved in the amount of $1,499,449 from the State of Colorado

Department of Public Safety, Division of Homeland Security and Emergency Management, for the Presidential Disaster Declaration of the September 11, 2013 flooding.

Resolution 14-122 was approved in the amount of $922,060 from the State of Colorado Department of Public Safety, Division of Homeland Security and Emergency Management, for the Presidential Disaster Declaration of the 2013 Black Forest Fire.


Resolution 14-397 was approved to appropriate $897,953 from the Public Safety Tax Fund Balance

to the Restricted Public Safety Tax budget.

Resolution 14-100 was approved in the amount of $870,000 from fees collected by the Sheriff’s Office from inmates assigned to the Work Release Program, which is pursuant to authorization from the State Legislature in C.R.S. 18-1.3-106 to assist in relieving overcrowding conditions at the Criminal Justice Center.

Resolution 14-289 was approved to appropriate $850,000 to include the Sheriff’s Office Commissary Program as a restricted business unit within the General Fund.

Resolutions 14-225 and 14-392 were approved in the amount of $820,200 for a Detoxification Services Contract between Aspenpointe Health Network and the Sheriff’s Office, to provide detoxification services for the El Paso County Sheriff’s Office Social Detoxification Program.

Resolution 14-99 was approved for $748,200 for Intergovernmental Agreements with the United

States Department of Homeland Security, Immigration and Customs Enforcement (ICE), to the Sheriff’s Office Budget, for the housing of ICE detainees.

Resolution 14-101 was approved in the amount of $615,000 to the Sheriff’s Office budget from various local organizations for the Gateway Through the Rockies Program to provide effective education and therapeutic programming, re-entry support and employment work experience through community based partnerships.

Resolution 14-434 was approved in the amount of $512,250 to the Community Service/Parks

Division budget from Great Outdoors Colorado (GOCO) for the acquisition of Wedgewood Farms Open Space.

Resolution 14-223 was approved in the amount of $423,649 from a Detoxification Services Contract with Memorial Health System and the Sheriff’s Office, to provide detoxification services for the El Paso County Sheriff’s Office Social Detoxification Program.

Resolution 14-104 was approved for $420,000 for applicant fees collected by the Sheriff’s Office for the Concealed Handgun Permit Program (CHP).

General Fund Budget-to-Actuals Due to conservative spending practices, the County ended the year underspending budgeted general fund expenditures by $18.3 million. A majority of the underspending was reappropriated to the 2015 general fund budget to enable the County to finish projects it started in 2014, which were not completed by December 2014. Resolution 15-108 and 15-135 reappropriated $13,651,957 to the 2015 budget. The projects reappropriated consisted of the renovation of a new public safety building from the voter approved increased sales tax revenue and several fire and flood recovery projects. In the revenue area, the County projected and budgeted for a 3.0% increase in sales and use taxes. Actual collections were 5.1% higher than 2013, resulting in a $2.0 million positive variance with the budget. Charges for services ended the year $3.0 million lower than budgeted. A significant portion of this variance is attributable to decreased fees collected in the Clerk and Recorder's Office due to decreased recording of documents and a decrease in public trustee fees due to less foreclosure filings.


Capital Assets and Debt Administration Capital Assets At the end of 2014, the County had invested $884.2 million in a broad range of capital assets, including land, buildings, equipment, infrastructure, park facilities, etc. This table presents capital balances related to governmental funds and internal service funds.

El Paso County Capital Assets

(in millions)

Governmental Activities 2014 2013

Land 12.5 12.5 Construction in progress 2.9 6.0 Buildings & improvements 279.0 271.1 Machinery and equipment 77.3 72.0 Infrastructure 512.5 497.0 Total $ 884.2 $ 858.6

El Paso County’s investments in capital assets for its governmental and business-type activities as of December 31, 2014, amounts to $528.7 million (see Note C3). This investment in capital assets includes land, buildings and systems, improvement, machinery and equipment, park facilities, roads, highways, and bridges. Major capital asset events during 2014 included the following:

Road & Bridge Infrastructure projects of $2,542,251 completed and $2,543,150 additional in construction in

progress.

$2,792,977 was expended for various land and building renovation and improvements.

$4,331,360 was expended for repurposing and major improvements to 3755 Mark Dabling building. This property was acquired in 2013 through the Public Safety Sales Tax Initiative for the benefit of the Emergency Services Division.


Reconciliation of Capital Asset Schedules

Amount Explanation $ 884,252,667 Total capital including Governmental & Internal Services Funds 15,454,101 Capital not Depreciated - Governmental & Internal Services Funds 511,929,119 Capital net of Depreciation - Governmental & Internal Services Funds 527,383,220 15,454,101 Capital not Depreciated - Governmental & Internal Services Funds 868,798,566 Total Capital to Depreciate - Governmental & Internal Services Funds 884,252,667 Total before Depreciation (356,869,447) Depreciation 527,383,220 Net of Depreciation 884,078,089 Capital Assets Governmental Only 174,578 Internal Services Fund Capital Assets $ 884,252,667 Information on El Paso County’s capital assets can be found in the notes to the financial statements of this report in Note C3. Long-term Debt During 2014, El Paso County had a reduction in long-term debt accounts of $39.7 million and additions of $36.5 million resulting in a net reduction of $3.2 million. Additional information about El Paso County’s long-term debt is presented in the notes to the financial statements, particularly Note C.5A. There have not been any significant changes subsequent to December 31, 2014 to report. Contacting the County’s Financial Management The purpose of this financial report is to provide the County’s citizens, taxpayers, customers, investors, and creditors with a general overview of its finances and to show its accountability for the money it receives. If you have questions about this report or the reports of the component units, or need additional financial information, contact the County Budget Administration’s Finance Division, at El Paso County, 200 S. Cascade Ave., Suite 30, Colorado Springs, Colorado 80903. An electronic copy of this report can be found on the County's website http://adm.elpasoco.com/BudgetAdministration/Finance/Pages/default.aspx.


El Paso County Fair


BASIC FINANCIAL STATEMENTS


GOVERNMENT-WIDE FINANCIAL STATEMENTS


EL PASO COUNTY, COLORADO STATEMENT OF NET POSITION

DECEMBER 31, 2014

Primary Government

Component Units

Governmental

Activities Business-Type

Activities Total El Paso County Public Health

The El Paso County Housing

Authority

ASSETS Cash and investments $ 22,861,893 $ 424,465 $ 23,286,358 $ 2,735,762 $ 5,923,055Receivables

Property taxes 45,084,159 - 45,084,159 - -Accounts 2,300,767 241,727 2,542,494 3,273 4,805,719Intergovernmental 35,656,770 - 35,656,770 2,041,758 -Accrued interest 30 - 30 - 48,747

Inventories 3,324,625 - 3,324,625 - -Prepaid expenses 490,979 - 490,979 - -Restricted cash and investments 16,114,934 - 16,114,934 - -Note Receivable 6,663,546 - 6,663,546 - -Capital assets, not depreciated 15,454,101 - 15,454,101 - -Capital assets, net of accumulated depreciation 511,929,119 1,285,181 513,214,300 43,209 -

Total assets 659,880,923 1,951,373 661,832,296 4,824,002 10,777,521

DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding 1,942,298 - 1,942,298 - -

Total deferred outflows of resources 1,942,298 - 1,942,298 - -

LIABILITIES Internal balances (2,434) 2,434 - - -Accounts payable 8,104,229 22,846 8,127,075 118,421 18,304Due to other governments 2,298,824 - 2,298,824 216,109 -Interest payable 632,648 - 632,648 - -Accrued liabilities 4,395,705 6,797 4,402,502 218,185 104Unearned revenue 1,635 - 1,635 425,966 -Noncurrent liabilities

Due within one year 13,945,195 7,104 13,952,299 481,388 -Due in more than one year 254,529,522 58,058 254,587,580 597,419 -

Total liabilities 283,905,324 97,239 284,002,563 2,057,488 18,408

DEFERRED INFLOWS OF RESOURCES Deferred revenue - property taxes 45,084,159 - 45,084,159 - -

Total deferred inflows of resources 45,084,159 - 45,084,159 - -

NET POSITION Net investment in capital assets 378,589,179 1,285,181 379,874,360 43,209 -Restricted for:

TABOR 5,814,320 - 5,814,320 285,884 -Clerk & Recorder projects 167,692 - 167,692 - -Public Safety 5,771,098 - 5,771,098 - -Culture and Recreation projects 2,800,627 - 2,800,627 - -Public Works 282,182 - 282,182 - -Debt Service 16,114,934 - 16,114,934 - -Other Projects 1,915,749 - 1,915,749 - -

Unrestricted (78,622,043) 568,953 (78,053,090) 2,437,421 10,759,113

Total net position $ 332,833,738 $ 1,854,134 $ 334,687,872 $ 2,766,514 $ 10,759,113

The accompanying notes are an integral part of this statement.


EL PASO COUNTY, COLORADO STATEMENT OF ACTIVITIES


Program Revenues

Net (Expense) Revenue and Changes in Net Position

Primary Government

Component Units

Functions/Programs Expenses Charges for

Services

Operating Grants and

Contributions

Capital Grants and

Contributions Governmental

Activities Business-type

Activities Total El Paso County Public Health

The El Paso County Housing

Authority Primary government:

Governmental activities: General government $ 68,213,731 $ 25,107,711 $ 16,241,388 $ 932,285 $ (25,932,347) $ - $ (25,932,347) $ - $ -Public safety 102,380,666 6,008,910 12,402,051 7,928 (83,961,777) - (83,961,777) - -Public works 34,466,675 1,170,633 762,690 13,560,840 (18,972,512) - (18,972,512) - -Health and welfare 70,758,066 156,654 53,707,277 - (16,894,135) - (16,894,135) - -Culture and recreation 3,432,589 785,649 1,492,542 23,556 (1,130,842) - (1,130,842) - -Auxiliary services 568,875 - 40,200 - (528,675) - (528,675) - -Interest on long-term debt 7,436,929 - - - (7,436,929) - (7,436,929) - -

Total governmental activities 287,257,531 33,229,557 84,646,148 14,524,609 (154,857,217) - (154,857,217) - -Business-type activities:

Solid waste management 998,704 1,034,755 21,635 - - 57,686 57,686 - -

Total Business-type activities 998,704 1,034,755 21,635 - - 57,686 57,686 - -Total primary government 288,256,235 34,264,312 84,667,783 14,524,609 (154,857,217) 57,686 (154,799,531) - -

Component units: Public Health 24,856,444 5,989,446 18,655,138 - (211,860) -Housing Authority 414,857 869,770 - - - 454,913

Total component units $ 25,271,301 $ 6,859,216 $ 18,655,138 $ - - - - (211,860) 454,913

General revenues:

Taxes: Property taxes 43,584,455 - 43,584,455 - - Sales taxes 90,841,733 - 90,841,733 - - Specific ownership tax 5,162,327 - 5,162,327 - - Highway users tax 11,767,130 - 11,767,130 - - Investment earnings 319,970 233 320,203 2,262 126,955 Miscellaneous revenue - - - 75,068 - Total general revenues and transfers 151,675,615 233 151,675,848 77,330 126,955

Change in net position (3,181,602) 57,919 (3,123,683) (134,530) 581,868

Net position - January 1 336,015,340 1,796,215 337,811,555 2,901,044 10,177,245

Net position - December 31 $ 332,833,738 $ 1,854,134 $ 334,687,872 $ 2,766,514 $ 10,759,113



FUND FINANCIAL STATEMENTS


EL PASO COUNTY, COLORADO GOVERNMENTAL FUNDS

BALANCE SHEET DECEMBER 31, 2014

Major Funds

Non-Major Fund

General

Fund Road

and Bridge Human Services

Capital Projects

Conservation Trust

Total Governmental

Funds

ASSETS Cash and investments $ 11,816,854 $ 5,907,045 $ 138,221 $ 455,448 $ 789,418 $ 19,106,986Taxes receivable 43,092,437 1,991,722 - - - 45,084,159Accounts receivable 2,169,298 41,346 1,574 - - 2,212,218Advances to other funds 1,500,000 - - - - 1,500,000Due from other funds 1,640,908 479,401 2,000,000 - 4,778 4,125,087Due from other governments 26,853,169 1,272,504 7,470,766 8,540 - 35,604,979Inventories 1,425,909 1,898,716 - - - 3,324,625Prepaid items 240,162 - - - - 240,162Restricted cash and investments - - - 16,114,934 - 16,114,934

Total assets 88,738,737 11,590,734 9,610,561 16,578,922 794,196 127,313,150

LIABILITIES

Accounts payable 5,186,584 308,322 1,986,332 33,578 16,322 7,531,138Accrued wages 3,386,780 277,308 701,298 - 22,005 4,387,391Advances from other funds - - 1,500,000 - - 1,500,000Due to other funds 8,135,434 34,186 1,562,413 - - 9,732,033Due to other governments - 25,475 2,273,349 - - 2,298,824Unearned revenue 1,635 - - - - 1,635

Total liabilities 16,710,433 645,291 8,023,392 33,578 38,327 25,451,021

DEFERRED INFLOWS OF RESOURCES

Deferred revenue-property taxes 43,092,437 1,991,722 - - - 45,084,159

Total deferred inflows of resources 43,092,437 1,991,722 - - - 45,084,159

FUND BALANCES: Nonspendable 1,666,071 1,898,716 - - - 3,564,787Restricted 14,126,448 282,182 1,587,169 16,114,934 755,869 32,866,602Committed 4,429,589 338,253 - - - 4,767,842Assigned 6,438,541 6,434,570 - 430,410 - 13,303,521Unassigned 2,275,218 - - - - 2,275,218

Total fund balances 28,935,867 8,953,721 1,587,169 16,545,344 755,869 56,777,970

Total liabilities, deferred inflows of resources, and fund balances $ 88,738,737 $ 11,590,734 $ 9,610,561 $ 16,578,922 $ 794,196 $ 127,313,150




RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION

DECEMBER 31, 2014

Amounts reported for governmental activities in the statement of net position are different because:

Fund balances - total governmental funds $ 56,777,970

Capital assets used in governmental activities are not financial resources and,therefore, are not reported in the funds. 527,229,951

Internal service funds are used by management to charge the costs of the selfinsurance program to individual funds. The assets and liabilities of the internalservice funds are included in governmental activities in the statement of net position. 2,671,312

The portion of interest receivable that is not available to pay for current period expenditures and, therefore, is not reported in the funds. 30

Long-term note receivable from other governments for long-term capital lease. 6,663,546 Deferred outflows of resources are not available resources and, therefore are not reported in the funds. 1,942,298 Long-term liabilities are not due and payable in the current period and, therefore, are

not reported in the funds. The details of this difference are as follows:Accrued interest payable (632,648)Compensated absences payable (17,698,061)Certificates of Participation payable (158,315,000)Capital leases payable (4,607,822)Unamortized premium (4,112,672)Unamortized debt discount 184,216

OPEB Liability (77,269,382) Net position - governmental activities $ 332,833,738




STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES


Major Funds

Non-Major Fund

General

Fund

Road and Bridge

Fund

Human Services

Fund

Capital Projects

Fund Conservation

Trust

Total Governmental

Funds

REVENUES Property taxes $ 29,266,912 $ 1,939,123 $ - $ 12,378,420 $ - $ 43,584,455Sales taxes 74,644,632 - 16,197,101 - - 90,841,733Specific ownership taxes 4,407,520 754,807 - - - 5,162,327Highway user taxes - 11,767,130 - - - 11,767,130Intergovernmental 30,061,365 1,342,163 46,091,395 839,383 1,284,957 79,619,263Fees and fines 586,491 - - - - 586,491Licenses and permits 1,526,229 - - - - 1,526,229Charges for services 22,732,264 667,685 150,154 4,129,888 - 27,679,991Investment earnings 220,140 114 - 100,309 362 320,925Contributions 6,217,428 - 35,631 - - 6,253,059Miscellaneous 3,988,929 502,947 - 3,041 - 4,494,917

Total revenues 173,651,910 16,973,969 62,474,281 17,451,041 1,285,319 271,836,520

EXPENDITURES Current:

General government 59,143,342 - - 1,181,231 - 60,324,573Public safety 97,266,185 - - - - 97,266,185Public works - 11,929,523 - - - 11,929,523Health and welfare 11,167,398 - 60,644,191 - - 71,811,589Culture and recreation 1,900,886 - - - 1,254,659 3,155,545Auxiliary services 544,147 - - - - 544,147

Debt service: Principal 10,947 - - 8,166,346 - 8,177,293Interest and other charges 299 - - 7,874,520 - 7,874,819

Capital outlay 11,293,972 2,433,091 250,640 3,202,107 - 17,179,810Total expenditures 181,327,176 14,362,614 60,894,831 20,424,204 1,254,659 278,263,484Excess (deficiency) of revenues over (under) expenditures (7,675,266) 2,611,355 1,579,450 (2,973,163) 30,660 (6,426,964)

OTHER FINANCING SOURCES (USES) Capital lease issuance 121,908 - - 4,496,861 - 4,618,769Sale of capital assets 102,804 - - - - 102,804

Total other financing sources (uses) 224,712 - - 4,496,861 - 4,721,573

Net change in fund balances (7,450,554) 2,611,355 1,579,450 1,523,698 30,660 (1,705,391)

Fund balances - January 1, Restated 36,386,421 6,342,366 7,719 15,021,646 725,209 58,483,361Fund balances - December 31 $ 28,935,867 $ 8,953,721 $ 1,587,169 $ 16,545,344 $ 755,869 $ 56,777,970



EL PASO COUNTY, COLORADO RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES


Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances - total governmental funds $ (1,705,391)Governmental funds report capital outlays as expenditures. However, in the statement of activities,

the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The details of this difference are as follows:

Capital outlay 17,179,810 Depreciation (35,338,400)

The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase net position. The details of this difference are as follows:

Donations of capital assets increase net position in the statement of activities, but do not appear in the governmental funds because they are not financial resources. 13,071,367

In the statement of activities, only the gain or loss on the sale of capital assets is reported. However, in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net position differs from the change in fund balance by the cost of the capital assets sold. (549,021)

The issuance of long-term debt (e.g., leases, certificates of participation) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial

resources of governmental funds. Neither transaction has any effect on net position. Also, governmental fundsreport the effect of issuance costs, premiums and discounts, and similar items when debt is first issued, whereas,these amounts are deferred and amortized in the statement of activities. The details of this difference are as follows: Debt issued or incurred:

Accrued interest payable 21,772 Principal repayments on Certificates of Participation 6,910,000 Amortization of debt premium 348,616 Amortization of discount (14,170)Deferred loss on Certificates of Participation (149,408)Issuance of capital leases (4,618,769)Payment of capital leases as a reduction of long term debt 1,267,292 Capital lease activity 17,422

Some revenues and expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

The detail of those revenues/expenses follow: Compensated absences (1,265,473)Accrued interest receivable (955)Capital lease receivable activity (617,345)

Decrease (Increase) in OPEB liability 1,590,037 Internal service funds are used by management to charge the costs of the self insurance

program to individual funds. The net revenue of certain activities of internal servicefunds are reported with governmental activities. 671,014

Change in net position - governmental activities $ (3,181,602)

The accompanying notes are integral part of this statement.


EL PASO COUNTY, COLORADO PROPRIETARY FUNDS

STATEMENT OF NET POSITION DECEMBER 31, 2014

Business-type

Activities Non-Major

Enterprise Fund Solid Waste Management

Governmental Activities-

Self Insurance Internal

Service Fund ASSETS Current assets: Cash and cash equivalents $ 424,465 $ 3,754,907Accounts receivable 241,727 88,549Intergovernmental receivable - 51,791Due from other funds - 5,651,255Prepaid expenses - 250,817

Total current assets 666,192 9,797,319

Noncurrent assets: Capital assets, net of accumulated depreciation 1,285,181 153,269

Total assets 1,951,373 9,950,588

LIABILITIES Current liabilities: Accounts payable 22,846 573,090Accrued Wages 6,797 8,314Claims payable - 2,943,621Due to other funds 2,434 41,875Compensated absences 7,104 -

Total current liabilities 39,181 3,566,900

Noncurrent liabilities: Claims payable - 3,712,376Compensated absences 58,058 -

Total noncurrent liabilities 58,058 3,712,376

Total liabilities 97,239 7,279,276

NET POSITION Investment in capital assets 1,285,181 153,269Unrestricted 568,953 2,518,043

Total net position $ 1,854,134 $ 2,671,312




STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION


Business-type

Activities Non-Major

Enterprise Funds Solid Waste Management

Governmental Activities

Self Insurance Internal

Service Funds

Operating revenues Charges for services $ 1,034,755 $ 17,968,786

Operating expenses Insurance premiums 4,575 3,498,310Claim settlements - 22,096,062Depreciation 44,128 4,324Administration and operations 950,001 2,617,785

Total operating expenses 998,704 28,216,481

Operating income (loss) 36,051 (10,247,695)

Non-operating revenues/expenses Sales Tax - 10,918,709Investment earnings 233 -Contributions 21,635 -

Total non-operating revenues / expenses 21,868 10,918,709

Change in net position 57,919 671,014

Net position - January 1, Restated 1,796,215 2,000,298Net position - December 31 $ 1,854,134 $ 2,671,312




STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2014

Business-type Activities Governmental Non-Major Activities Solid Waste Self Insurance

Management Internal Enterprise Funds Service Funds Totals CASH FLOWS FROM OPERATING ACTIVITIES Cash received from: Customers $ 1,018,421 $ - $ 1,018,421 Interfund services provided 20,446 15,408,455 15,428,901 Cash payments to or on behalf of: Employees (324,482) (25,594,372) (25,918,854) Suppliers - operating (372,265) (1,572,244) (1,944,509) Customers (77,543) (77,543) Interfund services used (273,486) - (273,486) Net Cash Provided (Used) by Operating Activities 68,635 (11,835,704) (11,767,069)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Sales Taxes received - 10,918,709 10,918,709 Contributions 21,635 - 21,635 Net Cash Flows Provided by Noncapital Financing Activities 21,635 10,918,709 10,940,344

CASH FLOWS FROM INVESTING ACTIVITIES Investment income 233 - 233 Net Cash Flows Provided by Investing Activities 233 - 233

Net Increase (Decrease) in Cash and Cash Equivalents 90,503 (916,995) (826,492)

Cash and cash equivalents - January 1 333,962 4,671,902 5,005,864 Cash and cash equivalents - December 31 424,465 3,754,907 4,179,372

Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) 36,051 (10,247,695) (10,211,644) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities

Depreciation expense 44,128 4,324 48,452 (Increase) decrease in assets Receivable (16,333) (64,610) (80,944) Due from other funds 20,446 (2,595,769) (2,575,323) Intergovernmental receivables - (12,933) (12,933) Prepaid expenses - (150,817) (150,817) Increase (decrease) in liabilities Accounts payable (20,606) 193,302 172,696 Accrued liabilities - 1,003,056 1,003,056 Due to other funds (710) 35,437 34,727 Compensated absences 5,659 - 5,659

Net Cash Provided (Used) by Operating Activities $ 68,635 $ (11,835,704) $ (11,767,069)



EL PASO COUNTY, COLORADO FIDUCIARY FUNDS

STATEMENT OF NET POSITION DECEMBER 31, 2014

Private- Purpose

Trust Fund

Pension Trust - El Paso County

Retirement Plan

Agency Funds

ASSETS Cash and cash equivalents $ 246,557 $ 13,467,805 $ 29,623,333

Investments Equities:

Domestic equities and equity funds - 148,573,672 -International equity funds - 45,989,059 -

Fixed income: Fixed income funds - 62,757,441 -Corporate securities - 109,732 -

Fund of hedge funds - 16,579,068 -Real estate funds - 43,805,028 -

Total investments - 317,814,000 -

Receivables Securities sold - 519,026 -Interest and dividends - 43,866 -Other - 32,944 42,627

Total receivables - 595,836 42,627 Capital assets - net - 555,614 -

Total assets 246,557 332,433,255 29,665,960

LIABILITIES Payable for securities purchased - 556,603 -Accounts payable and accrued liabilities - 234,660 -Due to other governments - - 9,023,980Escrow deposits held by Trustee - - 976,667Funds due to bondholders - - 120,342Other - - 19,544,971

Total liabilities - 791,263 29,665,960

NET POSITION Held in trust for pension benefits and other purposes $ 246,557 $ 331,641,992 $ -



EL PASO COUNTY, COLORADO FIDUCIARY FUNDS

STATEMENT OF CHANGES IN NET POSITION FOR THE YEAR ENDED DECEMBER 31, 2014

Private- Purpose

Trust Funds

Pension Trust- El Paso County

Retirement Plan

ADDITIONS Contributions:

Employers $ - $ 10,321,799Employees - 10,389,283Total contributions - 20,711,082

Charges for services 74,486 -Other income - 16,083Investment earnings:

Net appreciation in fair value of investments - 18,911,263Interest and dividend income - 3,556,063Total investment earnings - 22,467,326

Less investment expenses - (886,013)Net investment income - 21,581,313

Total additions 74,486 42,308,478

DEDUCTIONS Outside agencies 3,551 -Benefits - 22,947,736Refunds - 1,812,170Administrative expenses - 589,681

Total deductions 3,551 25,349,587

Change in net position 70,935 16,958,891

Net position - January 1 175,622 314,683,101Net position - December 31 $ 246,557 $ 331,641,992



NOTES TO THE FINANCIAL STATEMENTS

EL PASO COUNTY, COLORADO NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2014


Note A – Summary of Significant Accounting Policies 1. Reporting entity El Paso County, Colorado (County) is governed by an elected five-member commission. As required by accounting principles generally accepted in the United States of America (US GAAP), these financial statements present the County and its component units, entities for which the government is considered financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations and so data from these units is combined with data of the primary government. Each discretely presented component unit, on the other hand, is reported in a single column in the basic financial statements. Each blended and discretely presented component unit has a December 31 year-end. El Paso County is not considered a component unit on any other financial reports. Blended component units

El Paso County Retirement Plan This is a cost-sharing, multiple-employer defined benefit plan as defined in State Statute for all full-time employees of the County. The Commissioners appoint two of the five members of the governing board, two members are employees of participating employers elected by participants, and the fifth member is the County Treasurer. The County and the employees of the County contribute over 90 percent of the funds in the plan. El Paso County Facilities Corporation This is a nonprofit corporation under the laws of the State of Colorado that was organized to acquire real estate, property and improvements for lease to the County, and upon the prior approval of a majority of the membership of the Board of County Commissioners, to borrow money and to become indebted and to execute and deliver bonds, notes or debentures to evidence such indebtedness, for the purpose of acquiring such real or personal property, constructing or installing such improvements, and for such other purposes as may be necessary to accomplish the objectives of the Corporation. Members of the Board of County Commissioners are deemed members of the Corporation for the purpose of appointing and removing members of the Corporation’s Board of Directors. The Facilities Corporation does not publish separate financial statements.

Discretely presented component units

El Paso County Public Health This is a quasi-municipal organization organized by authority of State Statutes and Resolution of the County Commissioners. According to State Statutes, the Commissioners appoint the governing board. Additionally, the County appropriates significant funds to the department’s operations. The El Paso County Public Health administers public health services for El Paso County residents. El Paso County Housing Authority The El Paso County Housing Authority was established by the Commissioners in order to help promote availability of decent, safe, and sanitary dwelling accommodations in the County to low-income families. The Commissioners appoint the five-member governing board and can impose its will on the Authority through its ability to appoint, hire, reassign, or dismiss those persons responsible for the day-to-day operations of the Authority. The Authority administers El Paso County’s low-income housing program. Financial statements of the County’s component units may be obtained from the County’s Budget Administration, Finance Division.


DECEMBER 31, 2014


2. Government-wide and fund financial statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of inter-fund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. Indirect costs are not allocated in the government-wide statement of activities. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. 3. Measurement focus, basis of accounting and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements, with exception of the agency funds whose resources are not available for use by the County. Revenues are recorded when earned, and expenses are recorded when a liability is incurred regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period, or soon enough thereafter, to pay liabilities of the current period. The County considers all revenues available if they are collected within 60 days after year-end. Expenditures are recorded when the liability is incurred. However, debt service expenditures as well as expenditures related to compensated absences are recorded only when payment is due. Property taxes, sales taxes, and interest are susceptible to accrual. Accruals are reported net of allowances for non-collectibles. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. The County reports the following major governmental funds: The General Fund is the County’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Road and Bridge Fund is a special revenue fund that accounts for construction and maintenance of County roads and bridges and drainage financed by property taxes, highway users' fees, and other revenues restricted to use on roads and bridges. The Human Services Fund is a special revenue fund that accounts for the federal and state public welfare programs administered by the County and financed by grants, intergovernmental reimbursements, and property taxes.


DECEMBER 31, 2014


The Capital Projects Fund accounts for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds. Additionally, the County reports the following fund types: Special revenue funds account for the proceeds of specific revenue sources other than for major capital projects that are legally restricted to expenditures for specified purposes. The County’s non-major funds are:

The Conservation Trust Fund accounts for lottery revenue received from the State of Colorado, which is restricted to use for the development and maintenance of parks, trails, open space, and other recreational purposes.

Enterprise funds account for activities for which a fee is charged to external users for goods or services. The County’s non-major enterprise fund is:

The Solid Waste Management Fund was established by the Board of County Commissioners to collect tipping fees at privately owned landfills within the County. The funds will be appropriated to pay for operational service information and equipment needed for solid waste disposal sites within the County.

Internal service funds account for operations that provide services to other departments or agencies of the County, or to other governments, on a cost-reimbursement basis.

Because El Paso County is essentially self-insured, the Self-Insurance Fund was established to account for the accumulation and allocation of costs associated with insurance claims and administration costs.

Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the El Paso County’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

The Pension Trust Fund is accounted for in essentially the same manner as the proprietary funds, using the same measurement focus and basis of accounting. The pension trust fund accounts for the assets of the El Paso County Retirement Plan.

Private-Purpose Trust Funds are used to account for resources collected from developers of new subdivisions to provide for the purchase and development of additional parks and for distribution to school districts.

The School’s Trust Fund is used to account for resources from developers of new subdivisions and the distribution of these resources to local school districts. Agency funds are custodial in nature and do not present results of operations or have a measurement focus. These funds are used to account for assets held by the County as an agent for individuals, private organizations, other governments, and/or other funds.

Treasurer’s Agency Fund accounts for the receipt and disbursement of all revenues received by the Treasurer for the County and all other taxing entities in the County, as well as the receipt, investment, and disbursement of all other revenues received by the County. Public Trustee Agency Fund was established to account for expenditures for the Public Trustee’s Office. The Public Trustee is appointed by the Governor of Colorado for a four-year term. This office administers foreclosures including issuance of Public Trustee deeds, cure of default and lien redemptions. Rancho Colorado Agency Fund bonds were issued to finance infrastructure improvements such as roads, drainage facilities, and water/sanitation facilities. Falcon Vista Acquisition Fund was established in 2008 and bonds were issued to finance acquisition, construction and installation of certain public improvements within the Falcon Vista Fund subdivision. Public Improvement District Number 1 (PID#1) was established in 2011 as part of the implementation of the El Paso County 2030 Major Transportation Corridor Plan (MTCP). PID#1 is authorized to fund the costs of the public


DECEMBER 31, 2014


improvements using revenues derived from a mill levy, road impact fee revenues collected by El Paso County, proceeds of bonds, revenues received from other PIDs organized to implement the MTCP Program and any other legally available funds. Public Improvement District Number 2 (PID#2) was established in 2011 as part of the implementation of the El Paso County 2030 Major Transportation Corridors Plan (MTCP). PID#2 is authorized to fund the costs of public improvements using revenues derived from the mill levy, proceeds of debt issued by the District, and any other legally available funds provided that such revenues are pledged or otherwise transferred to District No. 1 to be applied to the MTCP Program by said District. Public Improvement District Number 3 (PID#3) was established in 2011 as part of the implementation of the El Paso County 2030 Major Transportation Corridors Plan (MTCP). PID#3 is authorized to fund the costs of public improvements using revenues derived from the mill levy, proceeds of debt issued by the District, and any other legally available funds, provided that such revenues are pledged or otherwise transferred to District No. 1 to be applied to the MTCP Program by said District. There has been no financial activity to report for 2014. Pioneer Village Roads Improvement District was established in 2013 to provide for the maintenance and upgrading of public roads within the boundaries of the District. Pioneer Village Roads Public Improvement District is authorized to fund the costs of public improvements using revenues derived from a mill levy and any other legally available funds. There was no financial activity to report for 2014. Stratmoor Valley Street Light Public Improvement District was established in 2013 to provide street lighting of the public roads within the boundaries of the District. Stratmoor Valley Street Light Improvement District is authorized to fund the costs of public improvements using revenues derived from a mill levy and any other legally available funds. There was no financial activity to report in 2014. Sheriff Agency Funds are used to account for funds collected for and disbursed from the Inmate Trust Fund, the Civil Trust Fund and the Confidential Informant Trust Fund.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds and internal service funds are charges to customers for sales or services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. Revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. 4. Assets, liabilities, deferred outflows/inflows of resources and net position/fund balance A. Deposits and investments Deposits consist of cash equivalent accounts, interest and non-interest bearing bank accounts. The County’s investment policy limits the investments to the following securities:

A. U.S. Treasury Obligations B. Federal Agency and Instrumentality Securities C. Time Certificates of Deposits (CDs) D. Negotiable Certificates of Deposit E. Corporate Bonds F. Municipal Bonds: General Obligations and Revenue Obligations G. Commercial Paper H. Eligible bankers Acceptances I. Local Government Investments Pools (LGIP) J. Repurchase Agreements and Reverse Repurchase Agreements K. Deposits in State or Nationally Chartered Depository Institutions


DECEMBER 31, 2014


Additionally, the El Paso County Retirement Plan’s (a component unit) investments authorized by Colorado statutes also include the following: 1. Corporate notes, bonds, and debentures 2. Railroad equipment trust certificates 3. Real property 4. Loans secured by first mortgages or deeds of trust on real property 5. Participating agreements with life insurance companies 6. Equity securities subject to certain limitations The Retirement Plan cash and investments consist of cash and cash equivalent accounts, U.S. government securities, corporate bonds and debentures, common stocks, open-end equity mutual funds, international bonds, and securities lending collateral. Investments are stated at fair value. The Retirement Plan includes investments in foreign currencies, which means changes in the exchange rate could adversely affect the fair value of an investment. For purposes of the statement of cash flows, the County considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Original maturity is the original maturity to the County. Except for nominal petty cash funds, all of the cash and investments for the County funds are in the custody of the County Treasurer. Except when otherwise required by trust agreements, the operating cash of all funds is pooled into various bank accounts. Interest income is allocated to funds on the basis of each fund’s participation in the pool. Cash in excess of operating requirements is invested in U.S. government securities, local government investment pools, and interest-bearing bank accounts. B. Receivables and payables Outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances”. Property taxes attach an enforceable lien on property. On or before May 1st, the Assessor sends Notice of Valuation for real property. Not later than December 15th, the Clerk certifies levy to the County Commissioners as of January 1st of the coming year. Taxes are payable in two installments on February 28th and June 15th, or in one installment due April 30th. The El Paso County Treasurer bills and collects property taxes for the County and the other taxing authorities within the County. Collections for other districts are accounted for in the Treasurer's agency funds. C. Inventories and prepaid items Inventories are valued at cost using the first-in, first-out method. Inventories of the General Fund consist primarily of supplies held for consumption and expendable parts and are considered expenditures when used. Inventories of the Road and Bridge Fund consist of expendable parts and supplies held for consumption and are considered expenditures when used. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements.


DECEMBER 31, 2014


D. Restricted assets Certain proceeds from the County’s capital expenditures fund Certificates of Participation, as well as certain resources set aside for their repayment, are restricted because they are maintained in separate bank accounts and their use is limited by applicable bond covenants. The construction fund accounts are used to report those proceeds of Certificates of Participation issuances that are restricted for use in construction. The total of those accounts as of December 31, 2014, was $4,266,064. The certificate fund accounts are used to segregate resources accumulated for debt service payments over the next twelve months. The total of those accounts as of December 31, 2014, was $11,848,870. E. Capital assets Capital assets, which include: property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the County as assets with an initial, individual cost of more than $5,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. The standard depreciation method is used for all assets. Donated capital assets are recorded at their estimated fair value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects. Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:

Assets YearsBuilding 40Improvements other than buildings 25Infrastructure 1-50Vehicles 4-8Furniture & fixtures 5General equipment 8-15

F. Deferred inflows/outflows of resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The County only has one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the government-wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflow of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The County only has one item that qualifies for reporting in this category. It is the unavailable revenue from property taxes reported in the governmental funds balance sheet and also in the government-wide statement of net position. Deferred revenue for property taxes results from the accrual of property taxes levied but not due until the following year. This revenue will be recognized in the year it is due and payable.


DECEMBER 31, 2014


G. Compensated absences It is the County’s policy to permit employees to accumulate a limited amount of earned but unused vacation and sick pay benefits, which will be paid to employees upon separation from County service. All compensated absences liabilities are accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. H. Long-term obligations In the fund financial statements, governmental fund types recognize debt premiums and discounts, as well as issuance costs, during the current period. The face amount of the debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Certificate of Participation premiums and discounts are deferred and amortized over the life of the Certificates of Participation using the effective interest method. Certificates of Participation are reported net of the applicable premium or discount. Issuance costs are reported as expenses when the debt is issued. I. Restatement of beginning net position and fund balance In 2014, the County reviewed its fund reporting policy. GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, calls for a review of accounting funds and fund definitions. A principle of governmental accounting and financial reporting state that "only the minimum number of funds consistent with legal and operating requirements should be established." In addition, the Statement clarifies that the general fund should be used to account for and report all financial resources not accounted for and reported in another fund. As major funds, the Road and Bridge Fund, Human Service Fund and the Capital Projects Fund must be reported separately. In addition, State Statute requires that the Conservation Trust Fund be reported separately. Upon review of the various funds reported in the County's Comprehensive Annual Financial Report and to improve the County's financial reporting by reducing the number of funds reported, it was determined that the following funds should be accounted for in the General Fund: Retirement Contribution Fund, Economic Development Fund and Pikes Peak Workforce Center. In addition, Fleet Management is now accounted for in General Fund instead of Road & Bridge. In addition, the County reviewed their accounting principle with regard to the Other Postemployment Benefit (OPEB) liability that was recorded in the Self Insurance Fund, an internal service fund. The County's OPEB plan is a pay-as-you-go plan and there are no assets in a Trust to separately state in a fiduciary fund. Because the OPEB plan is a separate liability from the internal Self Insurance Fund, the County determined that it is preferable to record the liability and its increases or decreases directly in the government-wide statement of net position and statement of activities.


DECEMBER 31, 2014


The resulting changes to net position and fund balance are listed below:

Governmental FundsBalance Sheet

General Fund

Fund balance at 12/31/2013 $ 34,379,659

Funds accounted for in General Fund (GASB 54) Economic Development 367,348 Fleet Management 881,056 Retirement Contribution 758,358 Pikes Peak Workforce Center - Restated balance for General Fund 36,386,421

Road and Bridge Fund

Fund Balance at 12/31/2013 7,223,422 Accounted for in General Fund (GASB 54) Fleet Management (881,056) Restated balance for Road and Bridge Fund 6,342,366

Other Governmental Funds Fund balance at 12/31/2013 1,850,915 Accounted for in General Fund (GASB 54) Retirement Contribution (758,358) Economic Development (367,348) Pikes Peak Workforce Center - Restated balance for Other Governmental Funds $ 725,209


DECEMBER 31, 2014


Non-Major Governmental FundsCombining Balance Sheet

Retirement Contribution Fund Fund balance at 12/31/2013 $ 758,358

Accounted for in General Fund (GASB 54) Retirement Contribution (758,358) Restated balance for Retirement Contribution Fund -

Economic Development Fund Fund Balance at 12/31/2013 367,348

Accounted for in General Fund (GASB 54) Economic Development (367,348) Restated balance for Economic Development Fund -

Pikes Peak Workforce Center Fund Fund balance at 12/31/2013 -

Accounted for in General Fund (GASB 54) Pikes Peak Workforce Center - Restated balance for Pikes Peak WorkForce Center Fund $ -

Proprietary FundsStatement of Net Position

Self Insurance Internal Service Fund

Fund balance at 12/31/2013 $ (76,859,121)

OPEB Liability - change in accounting principle

78,859,419

Restated net position for Self Insurance Internal Service Fund $ 2,000,298


DECEMBER 31, 2014


Note B – Stewardship, Compliance, and Accountability

1. Budgetary Information

Budgets are adopted on a basis consistent with US GAAP for all government funds. Proprietary funds, Falcon Vista and Rancho Colorado, adopt budgets using the modified accrual basis of accounting, which is not US GAAP for those fund types. Annual appropriated budgets are adopted for all governmental funds, proprietary funds, Local Improvement Districts, Public Improvement District #1, Public Improvement District #2 and Pioneer Village Roads Improvement District. All annual appropriations lapse at fiscal year end. Budgets are not presented for the Public Trustee Agency Fund or the other Agency funds because these are funds collected and held on behalf of others. In addition, budget is not presented for the Pension Trust because these funds are also collected on behalf of others and the Trust issues separately stated financial statements. Appropriations in governmental funds are encumbered upon issuance of purchase orders, contracts, or other forms of legal commitments. While appropriations lapse as of the end of the fiscal year, the succeeding year’s budget ordinance specifically provides for the re-appropriation of year-end encumbrances. Encumbrances outstanding as of December 31, 2014 do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. The County’s managers may make transfers of appropriations within a fund. Transfers of appropriations between funds require the approval of the Board of County Commissioners. The legal level of budgetary control is the fund level. The County follows these procedures in establishing the budgetary data reflected in the financial statements:

A. Public hearings are conducted by the County to obtain taxpayer comments.

B. Prior to December 31, the budget is legally enacted through passage of an appropriation resolution.

C. Any revisions that alter the total expenditures of any fund must be approved by the County Commissioners by passage of a resolution.

D. The Road and Bridge Fund budgets expenditures using the natural classifications. Therefore, a difference arises between the fund financial statements reflecting expenditures under US GAAP, under which salary expenditures may be part of capital outlay expenditures, and the budget to actual schedules reflecting expenditures in their natural classifications.

E. No fund had excesses of expenditures over appropriations for the year ended December 31, 2014.

2. Management use of estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.


DECEMBER 31, 2014


3. Fund Balance Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. As of December 31, 2014, fund balances of the governmental funds are classified as follows:

Nonspendable – amounts that cannot be spent either because they are in nonspendable form or

because they are legally or contractually required to be maintained intact. Restricted – amounts that can be spent only for specific purposes because of constitutional

provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments.

Committed – amounts that can be used only for specific purposes determined by a formal action

of the Board of County Commissioners. The Board of County Commissioners is the highest level of decision-making authority. Commitments may be established, modified, or rescinded only through resolutions approved by the Board of County Commissioners.

Assigned – amounts that do not meet the criteria to be classified as restricted or committed but which are intended to be used for specific purposes. Under the Board of County Commissioners’ adopted policy, only the Board of County Commissioners or the County Administrator and Budget Officer, are authorized to assign amounts for specific purposes.

Unassigned – all other spendable amounts.

The Board of County Commissioners adopted a minimum fund balance policy for the General Fund. The policy requires the unassigned fund balance at fiscal year-end to be at least equal to 20 – 25 percent of the subsequent year’s unrestricted General Fund operating expenditures. The minimum unrestricted fund balance required for 2014 is $22,737,996, which is more than the unassigned fund balance reflected in the unrestricted fund balance categories. A majority of the difference is due to planned spending into fund balance to balance the 2014 budget. Budgeting for 2015 and forward takes into account that unrestricted fund balance needs to be built back up. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the County considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the County considers amounts to have been spent first out of committed funds, then assigned funds and finally unassigned funds, as needed unless Board of County Commissioners or the authorized assignor has providedotherwise in its commitment or assignment activities.


DECEMBER 31, 2014


Note C – Detailed Notes on All Funds

1. Deposits and investments

Cash and Investments AmountCash and investments $ 23,286,358 Restricted cash and investments 16,114,934 Fiduciary cash and equivalents 43,337,695 Fiduciary investments 317,814,000

Total cash and investments $ 400,552,987

The County’s cash and investments consist of the following on December 31, 2014:

Treasurer's Agency Funds

Primary Government Restricted

Cash & Investments

Public Trustee

Retirement Plan PID - 1 PID - 2

Sheriff Agency Funds Total

Petty cash $ 85,633 $ - $ 300 $ - $ - $ - $ - $ 85,933

Cash deposits 15,524,208 - 1,593,554 13,467,805 - - 535,714 31,121,281 Money Market accounts 5,042,822 - - - - - - 5,042,822 Local government investment pool 15,216,739 - - - 159,962 10,837 - 15,387,538 Investments 14,986,479 16,114,934 - 317,814,000 - - - 348,915,413

$ 50,855,881 $ 16,114,934 $ 1,593,854 $ 331,281,805 $ 159,962 $ 10,837 $ 535,714 $ 400,552,987

Restricted cash and investments are held by U.S. Bank and pertain to Certificate of Participation reserve funds. The balance of $16,114,934, includes cash equivalents of $3,590,555, various Guaranteed Investment Contracts of $11,860,173 rated A2, Aaa and Baa1 by Moody, and $664,206 in other investments that are not rated. Deposits The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories which are determined by state regulators. All banks used by the County for depository and investments are on the approved list. Deposit amounts in excess of Federal insurance levels must be collateralized. PDPA allows institutions to create a single collateral pool for all public funds which is maintained by another institution or held in trust for all uninsured public deposits. The market value of the collateral must be at least equal to 102% of uninsured deposits. At December 31, 2014, the El Paso County’s cash deposits had a bank balance of $18,592,206. Of the bank balance, $912,216 was covered by federal depository insurance. The remainder of the bank balance, $17,679,990, was collateralized with securities held by the pledging financial institution and covered by eligible collateral as determined by the PDPA. There are several accounts included in the Treasurer's Agency Fund that are held under the custodianship of the El Paso County Treasurer. The transactions within these accounts occur outside of the oversight of the Finance Division of the Budget Administration Department.


DECEMBER 31, 2014


Investments The investment program is operated in conformance with federal, state and other legal requirements as well as in accordance with Colorado Revised Statutes, specifically C.R.S. 24-75-601. The County uses the “prudent person” standard which is applied in the context of managing an overall portfolio. The standard states that investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Credit Risk – Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. In order to mitigate credit risk, the County diversifies the investment portfolio through limiting investments to avoid overconcentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities), limiting investment in securities that have higher credit risks, investing in securities with varying maturities, and continuously investing a portion of the portfolio in readily available funds such as local government investment pools (LGIPs) or money market funds to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. The County’s investment policy limits the investments to the following securities:

A. U.S. Treasury Obligations B. Federal Agency and Instrumentality Securities C. Time Certificates of Deposits (CDs) D. Negotiable Certificates of Deposit E. Corporate Bonds F. Municipal Bonds: General Obligations and Revenue Obligations G. Commercial Paper H. Eligible bankers Acceptances I. Local Government Investments Pools (LGIP) J. Repurchase Agreements and Reverse Repurchase Agreements K. Deposits in State or Nationally Chartered Depository Institutions

Interest Rate Risk – Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The County mitigates risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes. The County further recognizes that certain types of securities, including variable rate securities, securities with principal pay downs prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environment, and therefore, adopts the following strategies to control and mitigate its exposure to market risk.

L. Liquidity funds will be held in investment instruments maturing within one year at the time of purchase. M. Longer term/core funds will be defined as funds in excess of liquidity requirements. The investments in this

portion of the portfolio will have maturities between 1 day and 5 years and will be invested in higher quality and liquid securities.

Custodial Credit Risk – Custodial credit risk is the risk that, in the event of the failure of the counterparty, the County will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The County’s investment policy requires all securities to be in the name of the county Treasurer and securities must be deposited in a safekeeping account at an authorized county depository institution or at an eligible security dealer. Concentration Risk - Concentration risk is the risk of exposure to loss that can result from failing to diversify investments. The County’s investment policy directs the Treasurer to diversify securities held in the investment portfolio to minimize the risk of losses from an excessive concentration of securities from a single issuer, with similar maturities, or (excepting Treasury securities) in similar categories.


DECEMBER 31, 2014


Primary Government (including Fiduciary Funds held by Treasurer)

Investment Maturities Investment Type for Primary Government Fair Value Up to 120 Days 121 Days to 5 Years Credit Rating U.S. Treasuries $ 9,687,826 $ - $ 9,687,826 US Govt GuarInstrumentality Federal National Mortgage Association (FNMA)

1,107,007 -

1,107,007 AA+/Aaa

Fannie Mae 1,524,296 - 1,524,296 AA+/Aaa Freddie Mac 729,654 - 729,654 AA+/Aaa Corporate Bonds 1,937,697 - 1,937,697 AA- to AAA Money Market funds 5,042,822 - 5,042,822 AAAm ColoTrust 14,272,726 14,272,726 AAAm

Total Investments controlled by the County $ 34,302,028 $ 14,272,726 $ 20,029,302

Blended Component Unit Retirement Plan– Cash and Investments

The Retirement Plan (Plan) has a bank balance of $7,864,872 on deposit with a banking institution at December 31, 2014. Of the bank balance, $250,000 is insured by the Federal Deposit Insurance Corporation at December 31, 2014. In addition, $5,602,933 was held by various money managers in banking institutions at December 31, 2014. The uninsured balances are collateralized with securities held by the banking institutions but not in the Plan's name.

Investments held by Retirement Plan (Fiduciary Fund): Fair Value Credit Rating Effective DurationDomestic stocks and equity mutual funds $ 148,573,672 * International stocks and equity mutual funds 45,989,059 * Fixed Income Investments: Fixed income funds 62,757,441 AA- through B 4 Corporate securities 109,732 Unrated Real estate funds 43,805,028 * Fund of hedge funds 16,579,068 * $ 317,814,000

*These investments are not rated. Interest Rate Risk – Interest rate risk is the risk that changes in interest rates of debt securities will adversely affect the fair value of an investment. Unless expressly permitted by the Board, the effective duration of any fixed income portfolio shall not exceed 120% of the effective duration of the broad market benchmark included in the instructions to the portfolio manager. Blended Component Unit - Retirement Plan Foreign Currency Risk Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment. As of December 31, 2014, none of the Plan’s investments were denominated in currencies other than the United States dollar.


DECEMBER 31, 2014


Component Units – El Paso County Public Health and El Paso County Housing Authority El Paso County Public Health The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by state regulators. Amounts on deposit in excess of federal insurance levels must be collateralized. The eligible collateral is specified by the PDPA. PDPA allows the institution to create a single collateral pool for all public funds. The pool is to be maintained by another institution or held in trust for all the uninsured public deposits as a group. The market value of the collateral must equal at least 102% of the uninsured deposits. The State Regulatory Commissions for banks and savings and loan associations are required by statute to monitor the naming of eligible depositories and reporting of the uninsured deposits and assets maintained in the collateral pools. On December 31, 2014, the Department had bank deposits of $1,295,772 collateralized with securities held by the financial institution’s agent but not in the Department’s name.

Cash and Investments held by El Paso County Public Health and El Paso County Housing Authority

El PasoCounty Public Health

El PasoCounty

Housing Authority

Credit Rating

Maturity Date

Petty Cash $ 5,170 $ - * Cash deposits 1,615,780 2,306,078 * Demand Local government investment pool 1,114,812 1,899,079 AAAm DemandU.S. Treasuries - 1,324,205 * 2014 Government National Mortgage Association (GNMA) - 393,693 AAA 2033 Repurchase Agreement - - * $ 2,735,762 $ 5,923,055 -

* These investments are not rated. 2. Property taxes The County is permitted to levy taxes on the assessed valuation for general governmental services. The combined tax rate to finance general governmental services for the year ended December 31, 2014, was 7.791 mills. The County’s assessed valuation for 2014 was $6,439,985,430. Therefore, the County could collect $50,173,937 for 2014 taxes. Instead, the Board of County Commissioners eliminated the County’s entire portion of business personal property tax. The property taxes collectible in 2015 total $45,084,159.


DECEMBER 31, 2014


3. Capital assets Capital asset activity for the year ended December 31, 2014, was as follows:

Balance Balance January 1, December 31, 2014 Increases Decreases 2014

Governmental activities: Capital assets, not being depreciated:

Land $ 12,539,305 $ - $ (2,470) $ 12,536,835 Art - 86,000 - 86,000 Construction in progress 6,032,109 1,089,760 (4,290,603) 2,831,266

Total capital assets, not being depreciated 18,571,414 1,175,760 (4,293,073) 15,454,101 Capital assets, being depreciated:

Buildings 208,879,919 - (85,955) 208,793,964 Improvements other than buildings 62,232,620 8,466,880 (474,880) 70,224,620 Machinery and equipment 72,000,476 9,355,030 (4,040,805) 77,314,701

Infrastructure 496,941,663 15,523,618 - 512,465,281 Total capital assets, being depreciated 840,054,678 33,345,528 (4,601,640) 868,798,566 Less accumulated depreciation for:

Buildings (60,411,424) (5,110,704) 41,313 (65,480,815) Improvements other than buildings (10,433,542) (2,629,351) 175,732 (12,887,161) Machinery and equipment (51,484,803) (6,584,836) 3,858,535 (54,211,104)

Infrastructure (203,272,535) (21,017,832) - (224,290,367)Total accumulated depreciation (325,602,304) (35,342,723) 4,075,580 (356,869,447) Total capital assets, being

depreciated, net 514,452,374 (1,997,195) (526,060) 511,929,119 Governmental activities capital

assets, net $ 533,023,788 $ (821,435) $ (4,819,133) $ 527,383,220

$174,578 of capital assets and $21,309 of accumulated depreciation for Self-Insurance, an internal service fund, are included in this note.


DECEMBER 31, 2014


Balance Balance January 1, December 31, 2014 Increases Decreases 2014

Business-type activities: Capital assets, not being depreciated:

Construction in progress $ - $ - $ - $ - Capital assets, being depreciated: Buildings 1,599,936 - - 1,599,936 Improvements other than buildings 83,365 - - 83,365 Machinery and equipment 17,426 - - 17,426

Total capital assets, being depreciated 1,700,727 - - 1,700,727 Less accumulated depreciation for: Buildings (326,685) (40,000) - (366,685) Improvements other than buildings (31,679) (3,334) - (35,013) Machinery and equipment (13,054) (794) - (13,848)

Total accumulated depreciation (371,418) (44,128) - (415,546) Total capital assets, being

depreciated, net 1,329,309 (44,128) - 1,285,181

Business-type activities capital assets, net $ 1,329,309 $ (44,128) $ - $ 1,285,181

Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: Amount General government $ 7,300,515

Public safety 5,285,749 Public works 22,447,501 Health and welfare 24,787 Culture and recreation 279,482 Veteran's services 366 Capital assets held by the government’s internal service

funds are charged to the various functions based on their usage of the assets 4,324

Total depreciation expense - governmental activities: 35,342,724

Business-type activities: Solid waste management 44,128

Total depreciation expense - business-type activities: $ 44,128


DECEMBER 31, 2014


4. Inter-fund receivables and payables:

The composition of inter-fund balances as of December 31, 2014, is as follows: Due to/from other funds: Receivable Funds Payable Funds Amount General Road and Bridge $ 34,186 Human Services 1,562,413 Non-Major Internal Service 41,875 Non-Major Enterprise 2,434 1,640,908 Road and Bridge General 479,401 479,401 Human Services General 2,000,000 2,000,000 Non-Major Governmental General 4,778 4,778 Non-Major Internal Service General 5,651,255 5,651,255 Total $ 9,776,342

Inter-fund balances resulted from the time lag between the dates that (1) inter-fund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.

Resolution No. 13-501 authorizes the advancement of funds for cash flow purposes from the General Fund to the Department of Human Services. As of December 31, 2014 Human Services had an advance of $1,500,000.


DECEMBER 31, 2014


5. Long-term debt

A. Changes in long-term liabilities The following is a summary of changes in long-term liabilities of the County for the year ended December 31, 2014. Beginning Ending

balance balance Due withinGovernmental activities: 1/1/2014 Additions Reductions 12/31/2014 one year Certificates of participation $ 165,225,000 $ - $ (6,910,000) $ 158,315,000 $ 7,855,000 Issuance discount (198,386) - 14,170 (184,216) (14,170) Plus Issuance premium 4,461,288 - (348,616) 4,112,672 348,616

Total certificates of participation 169,487,902 - (7,244,446) 162,243,456 8,189,446 Capital leases 1,256,345 4,618,769 (1,267,292) 4,607,822 1,162,858 OPEB 78,859,419 804,488 (2,394,525) 77,269,382 - Claims Payable 5,658,294 20,047,013 (19,049,310) 6,655,997 2,943,621 Compensated absences 16,432,588 10,994,936 (9,729,464) 17,698,060 1,649,270 Governmental activities Long-term liabilities 271,694,548 36,465,206 (39,685,037) 268,474,717 13,945,195

Business-Type Activities: Compensated absences $ 60,304 $ 16,158 $ (11,300) $ 65,162 $ 7,104

For compensated absences, the General fund normally liquidates 77 percent and the Human Services, Road and Bridge and Conservation Trust funds normally liquidate 14 percent, 8 percent and 1 percent, respectively. The Business-Type activities compensated absences are liquidated by the Solid Waste Management fund. Capital leases and certificates of participation are liquidated by the Capital Projects Fund. B. Certificates of participation During 2004, the County, through the El Paso County Facilities Corporation, issued $6,970,000 in Certificates of Participation, Series 2004, which were dated June 15, 2004. The 2004 certificates carry interest rates ranging from 3.00% to 4.60% and mature December 1, 2004, through December 1, 2018. Interest payments are due June 1 and December 1. Principal payments are due December 1. During 2007, the County, through the El Paso County Facilities Corporation, issued $77,850,000 in Certificates of Participation, Series 2007A, which were dated March 15, 2007. The 2007A certificates carry interest rates ranging from 4.00% to 5.50% and mature December 1, 2007, through December 1, 2029. Interest payments are due June 1 and December 1. Principal payments are due December 1. During 2008, the County, through the El Paso County Facilities Corporation, issued $2,500,000 in Certificates of Participation, Series 2008, which were dated December 15, 2008. The 2008 certificates carry interest rates ranging from 4.00% to 6.50% and mature December 1, 2011 through December 1, 2029. Interest payments are due June 1 and December 1. Principal payments are due December 1.


DECEMBER 31, 2014


During 2010, the County, through the El Paso County Facilities Corporation, issued $55,925,000 in Certificates of Participation, Series 2010, which were dated September 30, 2010. The 2010A was for $47,545,000 and the Series 2010B was for $8,380,000. The 2010A certificates carry interest rates ranging from 3.59% to 5.81% and mature December 1, 2017, through December 1, 2036. The 2010B certificates carry interest rates ranging from 2.25% to 5.00% and mature December 1, 2011 through December 1, 2016. Interest payments are due June 1 and December 1. Principal payments are due December 1. During 2011, the County, through the El Paso County Facilities Corporation, issued $32,820,000 Refunding Certificates of Participation series 2011A, which were dated July 20, 2011 and refund the Certificates of Participation Series 2002B. The 2011A certificates carry interest rates ranging from 2.75% to 5.25% and mature December 1, 2011 through December 1, 2027. The refunded Certificates Series 2002B will become due and payable, in accordance with their terms, until December 1, 2012 at which time all of the remaining 2002B Certificates shall mature or be redeemed at a redemption price. Interest payments are due June 1 and December 1. Principal payments are due December 1. During 2012, the County, through the El Paso County Facilities Corporation, issued $12,010,000 in Certificates of Participation Series 2012, which were dated December 15, 2012. The Series 2012 Certificates carry interest rates ranging from 3.00% to 5.00% and mature December 21, 2023. Interest payments are due June 1 and December 1 of each year. Principal payments are due December 1. Capital lease obligations In 2014, the County entered into a lease agreement as lessee for financing the JDE System with Oracle America Inc. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of future minimum lease payments as of the inception date. The first payment on this capital lease is due February 2015. A portion of the assets acquired through this capital lease are intangible in nature, physical assets acquired this year are as follows:

Governmental Asset: Activities Oracle Project - JDE System Exadata Machines $ 351,996

Less: Accumulated Depreciation (35,200)Net $ 316,796

The following schedule reflects debt service requirements for the capital lease as of December 31, 2014:

Date Interest Principal

TotalPayment Amount

February 2015 $ 29,463 $ 1,118,799 $ 1,148,262 February 2016 33,254 1,115,008 1,148,262 February 2017 22,277 1,125,985 1,148,262 February 2018 11,192 1,137,069 1,148,261

Total $ 96,186 $ 4,496,861 $ 4,593,047


DECEMBER 31, 2014


This year, the County entered into another lease agreement as lessee for financing a Mass Spectrometer for the Coroner's Office with the University of Colorado at Colorado Springs. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of future minimum lease payments as of the inception date. The equipment is valued at $121,908 and has an eight-year estimated useful life. This year, $7,619 was included in depreciation expense. In 2014 a payment of $10,947 including interest of $299 was made on this capital lease.

GovernmentalAsset: ActivitiesMass Spectrometer $ 121,908

Less: Accumulated Depreciation (7,619)Net $ 114,289

The following schedule reflects debt service requirements for this capital lease as of December 31, 2014:

Date Interest Principal

TotalPayment Amount

2015 $ 926 $ 44,059 $ 44,985 2016 492 44,492 44,984 2017 82 22,410 22,492

Total $ 1,500 $ 110,961 $ $ 112,461

C. Summary of debt service requirements The following schedule reflects debt service requirements to maturity for certificates of participation as of December 31, 2014:

Governmental ActivitiesCertificates of Participation

December 31, Principal Interest 2015 $ 7,855,000 $ 6,729,227 2016 8,210,000 6,289,912 2017 8,560,000 5,933,455 2018 8,940,000 5,561,202 2019 8,655,000 5,197,787

2020-2024 47,450,000 20,342,175 2025-2029 46,160,000 9,916,710 2030-2034 13,135,000 3,257,062 2035-2038 9,350,000 589,590

$ 158,315,000 $ 63,817,120


DECEMBER 31, 2014


D. Operating leases

El Paso County has entered into a number of operating leases which contain cancellation provisions and are subject to annual appropriations. For the reporting period, rent payments approximated $4,642,810 for all types of leases. These expenditures were made primarily from the General, Self Insurance and Human Services funds.

E. Conduit debt obligations

From time to time, the County has issued the following types of conduit debt: mortgage bonds and mortgage revenue refunding bonds to assist low- to middle-income residents in purchasing single family residences; exempt facility bonds for residential rental projects to be occupied by low- to middle-income residents and owned by private-sector entities; industrial revenue bonds to provide financial assistance to private-sector entities to promote industry and develop trade or other economic activity; and qualified 501(c)(3) bonds to provide financial assistance to non-profits for the acquisition and construction of eligible facilities. The various bonds are secured by investments under Indentures of Trust, loans that finance the projects, property, loan guarantees, and/or letters of credit. The various bonds are payable solely from certain revenues and receipts pledged under the Indentures of Trust, payments received on underlying mortgage loans, and payments received pursuant to loan agreements. These bonds do not constitute the debt or indebtedness of the County, nor is the County obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2014, the bonds had an estimated aggregate principal amount payable of $146,792,192.

In 2014, the County issued conduit debt as follows: On February 4, 2014, El Paso County adopted a resolution authorizing the issuance of up to $5,500,000 of Multifamily Housing Revenue Bonds (The Residence at Village Green Project) and on April 11, 2014, bonds were issued in the amount of $5,250,000. On December 18, 2014 El Paso County adopted a resolution authorizing the issuance of up to $8,000,000 of Improvement and Refunding Revenue Bonds (Rocky Mountain Health Care Services Project), and on December 31, 2014, bonds were issued in the amount of $5,500,000 with an additional issuance anticipated in early 2015.


DECEMBER 31, 2014


6. Fund Balance Designation GASB 54 requires the fund balance amounts to be properly reported within one of the fund balance categories and the following table provides detail of each category of fund balance. Capital Other General Road & Human Expenditure Governmental Fund Bridge Services Fund Funds Total Nonspendable: Inventories $ 1,425,909 $ 1,898,716 $ - $ - $ - $ 3,324,625 Prepaid items 240,162 - - - - 240,162 1,666,071 1,898,716 - - - 3,564,787 Restricted: TABOR 5,814,320 - - - - 5,814,320 Clerk & Recorder Projects 167,692 - - - - 167,692 Public safety grants and other Projects 5,771,098 - - - - 5,771,098 Small Area/Developer funds 282,182 - - - 282,182 Culture and Recreation Projects 2,044,758 - - - 755,869 2,800,627 Social Services - - 1,587,169 - - 1,587,169 Debt Service - - - 16,114,934 - 16,114,934 Other Projects 328,580 - - - - 328,580 14,126,448 282,182 1,587,169 16,114,934 755,869 32,866,602 Committed: Public Safety 258,566 - - - - 258,566 Clerk's Projects 1,671,063 - - - - 1,671,063 Capital Projects - - - - - - Road & Bridge - 338,253 - - - 338,253 Culture and Recreation Projects 132,293 - - - - 132,293 Retirement Contributions 71,971 - - - - 71,971 Debt Service Payments 2,275,980 - - - - 2,275,980 Other 19,716 - - - - 19,716 4,429,589 338,253 - - - 4,767,842 Assigned: Subsequent Year's Expenditures - - - 314,956 - 314,956 Capital Projects - - - 115,454 - 115,454 Public Safety 3,098,944 - - - - 3,098,944 Public Work Projects 300,000 6,434,570 - - - 6,734,570 Other Projects 3,039,597 - - - - 3,039,597 6,438,541 6,434,570 - 430,410 - 13,303,521 Unassigned: 2,275,218 - - - - 2,275,218

Total fund balance $ 28,935,867 $ 8,953,721 $ 1,587,169 $ 16,545,344 $ 755,869 $ 56,777,970


DECEMBER 31, 2014


Note D – Other Information 1. Risk management The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; health claims of employees; and natural disasters. The County established the Self-Insurance Fund (internal service fund) to account for and finance its uninsured risks of loss. Under this program, the fund provides coverage up to a maximum of $100,000, $600,000, $250,000 and $225,000 for each property damage claim, each workers’ compensation claim, each liability claim, and each health claim, respectively. The limit of coverage on the liability claims is $1,000,000. The County purchases commercial insurance for claims in excess of coverage provided by the fund and for all various other risks of loss. All funds of the County participate in the program and make payments to the funds based on estimates of the amounts needed to pay prior- and current-year claims. Claims liabilities of $6,655,997 that are reported in the Self-Insurance Fund at December 31, 2014, are based on the requirements of Governmental Accounting Standards Board Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable a liability has been incurred at the date of the financial statements, and the amount of the loss can be reasonably estimated. The present value of the estimated outstanding losses is the amount of money, discounted for anticipated investment income, required to meet unpaid claims. It is calculated based on a 2.0% yield on investments, as provided by the County. Changes in the claims liability amounts in 2014 and 2013 were:

Claims and Balance Changes in Claim Balance 1/1/14 Estimates Payments 12/31/14

Self-Insurance Fund $ 5,658,294 $ 20,047,013 $ 19,049,310 $ 6,655,997

Claims and Balance Changes in Claim Balance 1/1/13 Estimates Payments 12/31/13

Self-Insurance Fund $ 4,957,930 $ 18,555,920 $ 17,855,556 $ 5,658,294

Amounts reflected represent current claims for self-funded medical claims, wellness accounts, flexible spending accounts, Worker’s Compensation and other Liability claims totaling $2,943,621. The long-term portion represents claims pertaining to ongoing Worker’s Compensation and Liability claims totaling $3,712,376. 2. Contingencies

A Litigation

There is no current pending litigation in which the County is involved that is expected to result in material judgments against the County. All pending litigation is being vigorously defended. The potential settlement amounts are inestimable and it is the opinion of management that the potential outcome of such matters would not have a significant effect on the financial position of the County if disposed of unfavorably. B Grants

The County has received federal and state grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to request for reimbursements to grantor agencies for


DECEMBER 31, 2014


expenditures disallowed under the terms of the grant. Based upon prior experience, the County management believes such disallowances, if any, will be immaterial. C TABOR In November 1992, the people of the State of Colorado passed an amendment to the State’s Constitution (Article X, Section 20) known as the Taxpayer’s Bill of Rights (TABOR), which was effective December 31, 1992. TABOR’s intended purpose was to reasonably restrain most of the growth of government by imposing spending and revenue limits on the state and any local government, excluding enterprises. Provisions of TABOR require, among other things, that:

Each district shall reserve for use in declared emergencies 3% or more of its fiscal year spending (as defined by TABOR) excluding bonded debt service.

If revenue from sources not excluded from fiscal year spending exceeds the limits prescribed by TABOR in dollars for that fiscal year, the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset.

Revenue collected, kept, or spent illegally since four full fiscal years before an individual or class action enforcement suit is filed shall be refunded with 10% annual simple interest from the initial conduct.

With minor exceptions, advance voter approval is required for any new tax, tax rate increase, mill levy above that for the prior year or creation of any multiple fiscal years direct or indirect district debt or other financial obligation without certain cash reserve amounts.

The County believes it complies with the provisions of TABOR. However, many of its provisions will most likely be interpreted by the judicial system and those interpretations could differ from those of the County. Based upon the County’s interpretation of TABOR for 2014, the County does not exceed the fiscal year spending limit. Appropriate action will be taken if necessary upon final determination.

3. El Paso County Retirement Plan A Plan description All permanent, full-time employees of El Paso County are eligible to participate in the El Paso County Retirement Plan (the Plan), a cost-sharing multiple-employer defined benefit plan. The Plan has five participating employers. The Plan provides benefits to members at retirement or disability, or to their beneficiaries in the event of death. The El Paso County Board of Retirement is the administrator and has the authority to establish and amend benefit provisions of the Plan. The Plan implemented GASB Statement 67 as of January, 2014. The Plan issues a publicly available financial report that includes financial statements and required supplementary information, including the required six-year trend information, for the Plan. That report may be obtained by writing to the El Paso County Retirement Plan, 2880 International Cir., Suite N030, Colorado Springs, Colorado 80910, or by calling (719) 520-7490. The report may also be found at www.epcretirement.org. B Summary of significant accounting policies Basis of accounting The financial statements of the Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which employee services are performed. The employers’ contributions are recognized when due and a formal commitment to provide the contributions has been made. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan.


DECEMBER 31, 2014


Method used to value investments Marketable securities are stated at fair value. Securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the Plan year; investments traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the average of the last reported bid and ask price. C Funding policy The County and covered employees are each required by County Resolution to contribute 8.0 percent of the employees’ annual salary to the Plan. The contribution requirements of Plan members and the County are established and may be amended by the El Paso County Board of Retirement. The County’s contributions to the Plan for the years ended December 31, 2014, 2013, and 2012, were $9,155,964 (8.0 percent contribution rate), $7,871,502, and $7,655,286 (7.5 percent contribution rate), respectively, equal to the required match each year.

4. Other post employment benefit (OPEB) Plan Description The County contributes to and administers a single employer defined benefit post employment health care plan referred to as the Medical Benefits Trust Fund (MBTF) to provide medical benefits to eligible retired County employees and their beneficiaries. Authority was established by approval of a resolution adopted by the Board of County Commissioners (BoCC) to create the MBTF fund on December 15, 2004. The BoCC has the authority to amend the contributions and terms of the MBTF at will. The monthly premium rates and County subsidy rates are shown in the table below:

EPO Medical PlanYears of Service Elected/Appointed Officials Retired after 2004 Retired prior to

2004 Less than 4 Years $ 620.95 to 1,743.98 - - 4 Years or more County Subsidy

310.48 to 620.95

-

-

Less than 8 Years - $ 620.95 to 1,743.98 - Retire between 2004-2014 County Subsidy

-

341.52 to 620.95

-

Less than 10 Years - - $ 620.95 to 1,743.98Retire prior to 2004 County Subsidy

-

-

332.21 to 552.65

PPO 65+ Medical Plan - Medicare EligibleYears of Service Monthly Plan Cost County Subsidy Individual $ 299.00 $ -Less than 8 Years - - 8 - 14 Years - 164.45 15 - 19 Years - 224.25 20+ Years $ - $ 299.00


DECEMBER 31, 2014


Elected and Appointed Officials - PPO 65+ Medicare Eligible Years of Service Monthly Plan Cost County Subsidy Individual $ 299.00 $ - Less than 4 Years - - 4 - 7 Years - 149.50 8 or more Years $ - $ 299.00

Funding Policy The contribution requirements for plan members and their employers are established annually by the Employee Benefits Committee. The required contributions are based on pay-as-you-go financing. Plan member contributions are also determined from monthly premiums.

Annual OPEB cost and net OPEB obligation The County’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45 implemented proactively. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal annual costs and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the County’s annual OPEB cost for the year, and the amount actually contributed to the plan, and changes in the County’s net OPEB obligation to MBTF:

Annual Required Contribution (ARC) $ 10,734,415 Interest on Net OPEB Obligation 3,266,410 Adjustment to ARC (13,196,337)

Annual OPEB Cost 804,488 Contributions Made (2,394,525)

Increase in Net OPEB Obligation (1,590,037)NET OPEB - Beginning of Year 78,859,419 NET OPEB - End of Year $ 77,269,382

In calculating the plan liabilities and expenses, two key assumptions are the discount rate and the future medical inflation. A discount rate of 4.67% was assumed based on the average Moody's Aa corporate bond yield for the valuation period, down from 3.91% used in the last valuation. This rate is used to determine today's value of future expected benefit payments or subsidies. An initial annual medical inflation rate of 8.0% was used in the valuation. The inflation rate was graded down to 5.0% per year over a number of years. This is down from 8.5% used in the last valuation due to a review of the County's historical trend rates and the implementation of the Reach Your Peak wellness program. These rates reflect that the growth in health care costs is expected to moderate over time. The percent of eligible employees assumed to enroll in the retiree medical plan was reduced to 59% from 90%. The mortality table was updated to match the 2010 pension valuation mortality rates. As the retiree medical plan is not funded, asset growth or asset rate of return is not required. We used the discount rate of 4.67% to determine the present value of future benefits. This rate is based on the Moody's Aa corporate


DECEMBER 31, 2014


bond yield. Amortization was calculated using a level dollar amount versus a level percent of salary. Hence, an assumption regarding salary increases was not necessary. The county's subsidy level is based on the plan, the year of retirement and the years of service upon retirement. Both the cost of coverage and the County's subsidy are projected to increase at the health care cost trend rate shown below. No change in benefits and subsidy level was assumed. No changes in assumptions in the determination of County subsidy as a percentage of the total cost other than future trend increases. The County’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2014 and the preceding two years were as follows:

Percentage of Annual

OPEB

Fiscal Year End Annual

OPEB Cost% of Annual

OPEB Cost Contributed Net OPEB Obligation

12/31/2012 $ 13,567,749 13% $ 67,684,940 12/31/2013 13,367,272 16% 78,859,419 12/31/2014 804,488 298% 77,269,382

Funded status and funded progress The funded status of the plan as of the most recent actuarial valuation date is as follows:

Actuarial Valuation

Date

Actuarial Value of Assets (a)

Actuarial Accrued Liability

(AAL) - Entry Age (b)

Unfunded AAL (UAAL) (b-a)

Funded Ratio (a/b)

Covered Payroll (c)

UAAL as a Percentage of Covered

Payroll ((b - a) / c)

01/01/2014 $ - $ 114,895,686 $ 114,895,686 0.0% $ 119,618,797 96%

Actuarial Assumptions and Methods

Valuation Date 01/01/2014Actuarial Method Entry Age NormalAmortization Method Level DollarRemaining Amortization Period 30 years – Open Actuarial Assumptions Discount Rate 4.67%Long-term rate of return 4.91%Health Care Cost Trend Rate:2014 2015 2016 2017 2018 and later Annual Medical Inflation Rate General Inflation Rate

8.0% 7.0% 6.0% 5.0% 5.0% 8.0% Not Used

Actuarial valuations for OPEB plans involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revision as results


DECEMBER 31, 2014


are compared to past expectations and new estimates are made about the future. Actuarial calculations reflect a long-term perspective, and, as such, actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Projections of benefits are based on the types of benefits provided under the substantive plan at the time of each valuation and on the pattern of sharing of benefit costs between the employer and plan members to that point. Projections of benefits for financial reporting purposes do not explicitly incorporate the potential effect of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future.

The schedule of funding progress, presented in the Required Supplementary Information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits.

5. Jointly governed organizations Pikes Peak Regional Building Department (PPRBD) – The County, in conjunction with the City of Colorado Springs, City of Fountain, City of Manitou Springs, Town of Green Mountain Falls, Town of Monument and Town of Palmer Lake has created the Pikes Peak Regional Building Department. The PPRBD’s board is composed of three members, one appointed by the County, one appointed by the City of Colorado Springs, and one appointed by the other cities and towns together. During 2003, Certificates of Participation of $17,245,000 were issued to finance a building project for PPRBD. In 2012, the 2003 Series COP were refinanced by the Refunding and Improvement Certificates of Participation Series 2012. PPRBD continued into the lease agreement with the County to make lease payments that will pay the debt service on the Certificates of Participation. The County is not obligated for repayment of the Certificates of Participation beyond the resources provided by the lease agreement with PPRBD. The El Paso County Emergency Service Authority (ESA) - The ESA was established in 2014 between the City of Fountain and El Paso County (after the dissolution of the El Paso County Emergency Service Agency at the end of March 2014) to provide for uniform ambulance service in El Paso County, Colorado. It is the goal of the ESA to provide excellent emergency medical and ambulance transport services to citizens and visitors throughout El Paso County. The ESA is a 12-member board made up of EMS and first-responder professionals, physicians, elected officials and citizens, offering broad-based representation. Currently, the board includes two emergency room physicians, four fire district representatives, one paramedic, three elected officials, a citizen representative and a senior citizen representative. The ESA is not considered a Component Unit and is, therefore, not included in the County's Reporting entity. The County does not invest in the ESA and it is intended that the ESA administer its fees to recover all its expenses. The Fourth Judicial District Special Investigation Fund - This fund was established and governed by the El Paso County Sheriff's Department, the Teller County Sheriff's Department, the Colorado Springs Police Department, and the District Attorney's Office for the Fourth Judicial District of Colorado to account for money received from public nuisance seizures and is legally separate from the County. The funds are used for special investigations of organized crime, white-collar crime, and other illegal activity. 6. Pikes Peak Rural Transportation Authority (PPRTA) On November 2, 2004, the Pikes Peak Rural Transportation Authority was established by the voters in the four governments. The PPRTA was authorized to collect a one-percent sales tax to fund transportation and transit improvements. Fifty-five percent of the money would fund a voter-approved list of capital projects, 35% would be used for additional maintenance (such as street overlays and pothole patching), and 10% would be used to expand the Springs Transit bus system.


DECEMBER 31, 2014


The voters approved the collection of the 55% capital projects funds for a ten-year period ending December 31, 2014. In November 2012, nearly 80% of the voters in the region (including those in Ramah, which had joined the RTA in 2009) approved a ten-year extension for capital projects, from 2015 to 2024. 7. Construction and other significant commitments At year-end, there were projects under construction with commitments of:

Spent to Date Amount to Complete

December 31, 2014 Projects Project in 2015Sheriff's Office Projects $ 855,520 $ 62,610 Office of Emergency Managements Projects 154,643 200,292 IT Data Programs and Equipment Projects 232,517 373,556 Parks Projects Rainbow Falls 75,653 349,348 EPC Fairgrounds 28,832 131,382 UTE Pass - 40,000 WildFire Management - Fox Run Regional Park - 51,000 Total Construction Commitments $ 1,347,165 $ 1,208,188


Fountain Creek Nature Center


REQUIRED SUPPLEMENTARY INFORMATION


Major Governmental Funds Descriptions

GENERAL FUND

As the County’s major operating fund, the general fund accounts for ordinary operating expenditures financed by property taxes, service charges, and other sources. The fund includes

all resources and expenditures not legally or properly accounted for in other funds.

ROAD & BRIDGE FUND

Accounts for construction and maintenance of County roads and bridges financed by property taxes, highway user fees, and other revenues restricted to use on roads and bridges.

DEPARTMENT OF HUMAN SERVICES

Accounts for the federal and state public welfare programs administered by the County and

financed by grants, intergovernmental reimbursements, and property taxes.


EL PASO COUNTY, COLORADO GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2014

Budgeted Amounts

Original Final Actual

Amounts Variance withFinal Budget

REVENUES Property taxes $ 29,554,585 $ 29,554,585 $ 29,266,912 $ (287,673)Sales taxes 72,693,575 72,693,575 74,644,632 1,951,057Specific ownership taxes 4,407,520 4,407,520 4,407,520 -Intergovernmental 16,524,779 29,783,889 30,061,365 277,476Fees and fines 350,500 350,500 586,491 235,991Licenses and permits 1,317,600 1,421,547 1,526,229 104,682Charges for services 23,960,720 25,319,198 22,732,264 (2,586,934)Investment earnings 60,000 60,000 206,323 146,323Contributions 4,925,000 6,504,126 6,217,428 (286,698)Miscellaneous 811,915 4,451,844 3,988,929 (462,915)

Total revenues 154,606,194 174,546,784 173,638,093 (908,691)EXPENDITURES General government:

Administration 1,670,600 1,916,876 1,570,432 346,444Budget administration 2,016,430 2,221,288 1,977,005 244,283County Assessor 3,643,669 3,643,669 3,311,356 332,313County Attorney 935,039 1,356,860 1,356,257 603County Clerk and Recorder 10,322,629 10,230,429 8,561,324 1,669,105County Surveyor 9,129 9,129 8,161 968County Treasurer 1,164,485 1,164,485 1,159,689 4,796Development services 1,947,118 1,882,208 1,784,424 97,784Economic development 6,238,026 7,826,675 7,565,308 261,367Employee benefits and medical services 911,566 960,566 730,956 229,610Facilities management 7,799,313 7,906,121 7,827,319 78,802Finance 1,419,588 2,125,935 1,728,601 397,334Fleet management 5,545,695 3,978,756 3,623,514 355,242General county support 2,561,706 1,957,579 1,541,404 416,175Information technology 8,834,054 8,986,842 8,160,334 826,508Procurement 447,993 447,993 444,919 3,074Retirement administration 6,275,772 6,510,234 6,293,527 216,707Security 1,293,454 1,265,454 1,066,871 198,583

Total general government 63,036,266 64,391,099 58,711,401 5,679,698Public safety:

Community corrections 6,019,892 6,435,989 6,428,282 7,707Coroner 2,141,010 2,267,410 2,222,345 45,065County Sheriff 62,205,985 74,299,563 68,816,182 5,483,381District Attorney Office 12,005,031 12,207,866 12,203,267 4,599Fire and Flood Recovery - 9,904,226 7,596,109 2,308,117

Total public safety 82,371,918 105,115,054 97,266,185 7,848,869Health and welfare:

Environmental services 362,692 677,781 530,619 147,162Health administration 3,285,804 3,285,804 3,285,804 -Pikes Peak Workforce Center 7,311,186 7,422,382 7,350,975 71,407

Total health and welfare 10,959,682 11,385,967 11,167,398 218,569Culture and recreation:

Parks 2,144,188 2,492,357 1,900,886 591,471

Total culture and recreation 2,144,188 2,492,357 1,900,886 591,471


EL PASO COUNTY, COLORADO GENERAL FUND


Budgeted Amounts



Auxiliary services: Veterans services 299,096 367,017 367,017 -CSU extension service 170,782 178,754 177,130 1,624

Total auxiliary services 469,878 545,771 544,147 1,624Debt service - - 11,246 (11,246)Capital outlay 3,724,502 14,788,701 10,799,462 3,989,239

Total expenditures 162,706,434 198,718,949 180,400,725 18,318,224Excess (deficiency) of revenues over (under) expenditures (8,100,240) (24,172,165) (6,762,632) 17,409,533

OTHER FINANCING SOURCES (USES) Sale of capital assets - 85,480 102,804 17,324

Total other financing sources (uses) - 85,480 102,804 17,324Net change in fund balances $ (8,100,240) $ (24,086,685) $ (6,659,828) $ 17,426,857

See the accompanying independent auditors' report.


EL PASO COUNTY, COLORADO ROAD AND BRIDGE FUND


Budgeted Amounts



REVENUES Property taxes $ 1,963,195 $ 1,963,195 $ 1,939,123 $ (24,072)Specific ownership taxes 262,280 262,280 754,807 492,527U.S. Forest Service/Mineral Leasing - - 33,455 33,455Highway user taxes 11,250,000 11,250,000 11,767,130 517,130Additional motor vehicle registration 650,000 650,000 682,028 32,028Local Revenue - 371 353 (18)Intergovernmental 350,000 1,540,863 579,473 (961,390)Sale of Materials (BLM) 27,000 27,000 47,207 20,207Charges for services 306,000 370,500 667,332 296,832Investment earnings - - 114 114Miscellaneous - - 502,947 502,947

Total revenues 14,808,475 16,064,209 16,973,969 909,760

EXPENDITURES Administration 5,731,708 7,471,193 5,682,692 1,788,501Personnel services 8,990,969 9,068,297 8,956,285 112,012Capital outlay 85,798 682,002 134,483 547,519

Total expenditures 14,808,475 17,221,492 14,773,460 2,448,032

Net change in fund balances $ - $ (1,157,283) $ 2,200,509 $ 3,357,792



EL PASO COUNTY, COLORADO HUMAN SERVICES FUND


Budgeted Amounts



REVENUES Sales taxes $ 16,197,101 $ 16,197,101 $ 16,197,101 $ -Intergovernmental 41,247,899 44,772,899 46,091,395 1,318,496Charges for services - - 150,154 150,154Contributions 30,000 30,000 35,631 5,631

Total revenues 57,475,000 61,000,000 62,474,281 1,474,281

EXPENDITURES Child welfare block grant 28,215,390 29,369,890 29,259,048 110,842Child care block grant 1,976,636 1,850,636 1,822,934 27,702Child Support Enforcement 3,798,540 4,111,090 4,093,984 17,106Miscellaneous federal grants 3,247,064 3,256,164 3,181,800 74,364Local county funding 457,804 451,622 450,023 1,599County administration block grant 9,351,781 12,627,713 12,574,861 52,852Temporary aid to needy families 10,452,785 9,332,885 9,329,264 3,621

Total expenditures 57,500,000 61,000,000 60,711,914 288,086

Net change in fund balances $ (25,000) $ - $ 1,762,367 $ 1,762,367



Black Forest Regional Park


EL PASO COUNTY, COLORADO BUDGETARY COMPARISON SCHEDULE BUDGET-TO-GAAP RECONCILIATION

FOR THE YEAR ENDED DECEMBER 31, 2014 NOTE A - Explanation of Differences Between Budgetary Inflows and Outflows and GAAP Revenues and Expenditures General Road Human Fund & Bridge ServicesSources/inflows of resources Total revenues and other financing sources - budgetary basis from

the schedules of revenues, expenditures, and changes in fund balances - budget and actual $ 173,740,897 $ 16,973,969 $ 62,474,281

Interest earned on investments is not an inflow for budgetary purposes but is included as revenue for financial reporting purposes 13,817 - -

Capital Lease Issuance is not an inflow for budgetary purposes but are non-operating revenues for financial reporting purposes 121,908 - - Total operating revenues, non-operating revenues, capital

contributions - GAAP basis from the combining statement of revenues, expenses and changes in fund net position 173,876,622 16,973,969 62,474,281

-

Uses/outflows of resources Total expenditures and other financing uses - budgetary basis from

the schedules of revenues, expenditures, and changes in fund balances - budget and actual 180,400,725 14,773,460 60,711,914

Capital outlays are outflows of budgetary resources but are not expenses for financial reporting purposes 494,508 - -

Depreciation is not an outflow of budgetary resources but is an expense for financial reporting purposes - - -

Accrued wages are not outflows of budgetary resources but are expenditures for financial reporting purposes 416,254 (18,288) 182,917

Inventory adjustments are not outflows of budgetary resources but are expenses for financial reporting purposes 51,346 (392,558) -

Prepaid expenses are not outflows of budgetary resources but are adjustments to expenses for financial reporting purposes (35,657) - -Health claims incurred but not reported are not outflows of

budgetary resources but are expenses for financial reporting purposes - - -

Total operating expenses - GAAP basis from the combining

statement of revenues, expenses and changes in fund net position $ 181,327,176 $ 14,362,614 $ 60,894,831


Solid Conservation Self- Capital Waste Trust Insurance Projects Management Fund Fund

$ 17,350,732 $ 1,056,623 $ 1,285,319 $ 28,887,495

100,309 - - -

4,496,861 - - -

21,947,902 1,056,623 1,285,319 28,887,495

17,888,407 948,916 1,250,822 27,209,100

2,535,797 - - - - 44,128 - 4,324 - 5,660 3,837 5,354 - - - - - - - - - - - 997,703

$ 20,424,204 $ 998,704 $ 1,254,659 $ 28,216,481



REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS FOR THE

EL PASO COUNTY OTHER POSTEMPLOYMENT HEALTHCARE PLAN

Actuarial Valuation Date

Actuarial Value

of Assets

Actual Accrued Liability

(AAL) -- Entry AgeUnfunded

AAL (UAAL) Funded Ratio Covered Payroll

UAAL as a Percentage Of Covered

Payroll (a) (b) (b - a) (a / b) (c) ((b – a) / c)

01/01/2010 - $ 131,154,853 $ 131,154,853 0.0% $ 94,157,897 139%01/01/2012 - 104,901,666 104,901,666 0.0% 106,197,075 99%01/01/2014 - 114,895,686 114,895,686 0.0% 119,618,797 96%

See the accompanying independent auditors’ report.


Special Revenue Funds Schedules of Revenues, Expenditures, and Changes in

Fund Balances - Budget and Actual


EL PASO COUNTY, COLORADO CONSERVATION TRUST FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2014

Budgeted Amounts



REVENUES Intergovernmental $ 1,295,847 $ 1,295,847 $ 1,284,957 $ (10,890)Investment earnings 1,000 1,000 362 (638)

Total revenues 1,296,847 1,296,847 1,285,319 (11,528)

EXPENDITURES Culture and recreation 1,296,847 1,296,847 1,250,822 46,025


Change in net position $ - $ - $ 34,497 $ 34,497



Major Governmental Funds

Capital Projects Fund Description

CAPITAL PROJECTS FUND

Accounts for the construction, improvement and/or purchase of public facilities, including, land, buildings, and furnishings. Financing is provided by property taxes and capital lease proceeds


EL PASO COUNTY, COLORADO CAPITAL PROJECTS FUND


Budgeted Amounts



REVENUES Property taxes $ 12,542,455 $ 12,542,455 $ 12,378,420 $ (164,035)Intergovernmental 4,956,079 4,963,120 4,972,312 9,192

Total revenues 17,498,534 17,505,575 17,350,732 (154,843)

EXPENDITURES Purchased Services 211,614 7,522 (107,706) 115,228Debt service 16,040,867 16,040,867 15,936,710 104,157Capital outlay 1,250,000 2,555,164 2,059,403 495,761


Net change in fund balances $ (3,947) $ (1,097,978) $ (537,675) $ 560,303



Proprietary Funds

Enterprise Funds Descriptions

These funds account for the programs and expenditures for which a fee is charged to external users for goods and services.

SOLID WASTE MANAGEMENT

The Solid Waste Management Fund has been established by the Board of County

Commissioners to collect tipping fees at privately owned landfills within the County. The funds will be appropriated to pay for operational service information and equipment needed for solid

waste disposal sites within the County.

Internal Service Funds Descriptions

Internal service funds are usually to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other

government units, on a cost reimbursement basis.

SELF-INSURANCE FUND

El Paso is essentially self-insured. The Self-Insurance Fund was established to account for the accumulation and allocation of costs associated with insurance claims and administration costs.


EL PASO COUNTY, COLORADO SOLID WASTE MANAGEMENT FUND


Budgeted Amounts



OPERATING REVENUES

Charges for services $ 978,171 $ 978,171 $ 1,034,755 $ 56,584

Total revenues 978,171 978,171 1,034,755 56,584

OPERATING EXPENSES

Personnel Services 335,136 337,246 333,933 3,313Administration and operations 643,215 641,105 614,983 26,122

Total expenditures 978,351 978,351 948,916 29,435

Operating income (loss) (180) (180) 85,839 86,019

NONOPERATING REVENUES (EXPENSES)

Investment earnings 180 180 233 53Contributions - - 21,635 21,635

Total nonoperating revenues (expenses) 180 180 21,868 21,688


See the accompanying independent auditor's report.


EL PASO COUNTY, COLORADO SELF INSURANCE FUND


Budgeted Amounts



OPERATING REVENUES

Charges for services $ 18,144,413 $ 18,144,413 $ 17,968,786 $ (175,627)

Total revenues 18,144,413 18,144,413 17,968,786 (175,627)

OPERATING EXPENSES

Insurance premiums 3,022,943 3,545,733 3,492,957 52,776Claim settlements 25,457,765 22,824,415 21,098,359 1,726,056Administration and operations 582,414 2,772,197 2,617,784 154,413

Total expenditures 29,063,122 29,142,345 27,209,100 1,933,245

Operating income (loss) (10,918,709) (10,997,932) (9,240,314) 1,757,618

NONOPERATING REVENUES (EXPENSES)

Sales Tax 10,918,709 10,918,709 10,918,709 -

Total nonoperating revenues (expenses) 10,918,709 10,918,709 10,918,709 -

Change in net position $ - $ (79,223) $ 1,678,395 $ 1,757,618



Fiduciary Funds

Private-Purpose Trust Funds Descriptions

Private Purpose Trust funds are fund types used to report assets held on behalf of a trust arrangement. The County is responsible for ensuring the assets reported in these funds are used

for their intended purposes.

SCHOOLS TRUST FUND

The Schools Trust Fund is used to account for resources from developers of new subdivisions and the distribution of these resources to local school districts.

Agency Funds Descriptions

Agency funds are used to account for assets held by the government as an agent for individuals, private organizations, other governments, and/or other funds.

TREASURER’S AGENCY FUND

Accounts for the receipt and disbursement of all revenues received by the Treasurer for the

County and all other taxing entities in the County, as well as the receipt, investment, and disbursement of all other revenues received by the County.

PUBLIC TRUSTEE AGENCY FUND

This fund was established to account for expenditures for the Public Trustee’s Office. The Public Trustee is appointed by the Governor of Colorado for a four-year term. This office administers foreclosures including issuance of Public Trustee deeds, cure of default and lien

redemptions.

RANCHO COLORADO AGENCY FUND

Rancho Colorado bonds were issued to finance infrastructure improvements such as roads, drainage facilities, and water/sanitation facilities.

FALCON VISTA ACQUISITION LID

Falcon Vista Acquisition bonds were issued to finance acquisition, construction and installation

of certain public improvements within the Falcon Vista subdivision.

PUBLIC IMPROVEMENT DISTRICTS #1 and #2

Public Improvement Districts account for the receipt and disbursement of revenues derived from mill levies, proceeds of debt issued by the Districts, and revenues from road impact fees.

SHERIFF AGENCY FUNDS

Accounts for funds collected for and disbursed from the Inmate Trust Fund, the Civil Trust

Fund and the Confidential Informant Trust Fund.


EL PASO COUNTY, COLORADO SCHOOLS TRUST FUND


Budgeted Amounts



ADDITIONS

Charges for services $ 100,000 $ 100,000 $ 74,486 $ (25,514)

TOTAL ADDITIONS 100,000 100,000 74,486 (25,514)

DEDUCTIONS

Outside agencies 100,000 100,000 3,551 96,449

TOTAL DEDUCTIONS 100,000 100,000 3,551 96,449




EL PASO COUNTY, COLORADO AGENCY FUNDS

COMBINING STATEMENT OF NET POSITION DECEMBER 31, 2014

Treasurer's Public Trustee

Rancho Colorado

Falcon Vista

Public Improvement

District 1

Public Improvement

District 2 Sheriff Agency

Funds Total

ASSETS

Cash and cash equivalents $ 27,202,624 $ 1,593,854 $ 46,989 $ 73,353 $ 159,962 $ 10,837 $ 535,714 $ 29,623,333

Other Assets - 30,598 - - 12,029 - - 42,627

Total assets 27,202,624 1,624,452 46,989 73,353 171,991 10,837 535,714 29,665,960

LIABILITIES

Due to other governments 9,023,980 - - - - - - 9,023,980

Escrow deposits held by Trustee - 976,667 - - - - - 976,667

Funds due to bondholders - - 46,989 73,353 - - - 120,342

Other 18,178,644 647,785 - - 171,991 10,837 535,714 19,544,971

Total liabilities $ 27,202,624 $ 1,624,452 $ 46,989 $ 73,353 $ 171,991 $ 10,837 $ 535,714 $ 29,665,960




COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED DECEMBER 31, 2014

TREASURER'S AGENCY FUND Balance Balance January 1, 2014 Additions Deletions December 31, 2014

ASSETS Cash and investments $ 27,959,049 $ 881,990,820 $ 882,747,245 $ 27,202,624

LIABILITIES Due to other governments 9,273,541 681,005,415 681,254,976 9,023,980 Other 18,685,508 200,985,405 201,492,269 18,178,644

Total liabilities $ 27,959,049 $ 881,990,820 $ 882,747,245 $ 27,202,624

RANCHO COLORADO AGENCY FUND Balance Balance January 1, 2014 Additions Deletions December 31, 2014ASSETS Cash and investments $ 6,009 $ 41,604 $ 624 $ 46,989

LIABILITIES Funds due to bondholders $ 6,009 $ 46,900 $ 5,920 $ 46,989

PUBLIC TRUSTEE AGENCY FUND Balance Balance January 1, 2014 Additions Deletions December 31, 2014ASSETS Cash and investments $ 1,157,216 $ 50,734,928 $ 50,298,290 $ 1,593,854 Other assets 49,573 30,598 49,573 30,598 Total assets 1,206,789 50,765,526 50,347,863 1,624,452

LIABILITIES Escrow deposits held by trustee 469,334 49,964,614 49,457,281 976,667 Other 737,455 800,912 890,582 647,785





COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES – CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2014

FALCON VISTA ACQUISITION LID Balance Balance January 1, 2014 Additions Deletions December 31, 2014

ASSETS Cash and investments $ 81,149 $ 84,922 $ 92,718 $ 73,353

LIABILITIES Funds due to bondholders $ 81,149 $ 84,922 $ 92,718 $ 73,353

PUBLIC IMPROVEMENT DISTRICT #1 Balance Balance January 1, 2014 Additions Deletions December 31, 2014

ASSETS Cash and investments $ - $ 459,962 $ 300,000 $ 159,962 Other assets 343,648 12,029 343,648 12,029

Total assets 343,648 471,991 643,648 171,991

LIABILITIES Other $ 343,648 $ 128,343 $ 300,000 $ 171,991

PUBLIC IMPROVEMENT DISTRICT #2 Balance Balance January 1, 2014 Additions Deletions December 31, 2014

ASSETS Cash and investments $ - $ 10,989 $ 152 $ 10,837

LIABILITIES Other $ - $ 10,989 $ 152 $ 10,837

SHERIFF AGENCY FUNDS Balance Balance January 1, 2014 Additions Deletions December 31, 2014

ASSETS Cash and investments $ 672,747 $ 6,610,438 $ 6,747,471 $ 535,714

LIABILITIES Other $ 672,747 $ 6,610,438 $ 6,747,471 $ 535,714



COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES – CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2014

TOTALS - ALL AGENCY FUNDS Balance Balance January 1, 2014 Additions Deletions December 31, 2014ASSETS Cash and investments $ 29,876,170 $ 939,933,663 $ 940,186,500 $ 29,623,333 Other assets 393,221 42,627 393,221 42,627 30,269,391 939,976,290 940,579,721 29,665,960

LIABILITIES Due to other governments 9,273,541 681,005,415 681,254,976 9,023,980 Escrow deposits held by trustee 469,334 49,964,614 49,457,281 976,667 Funds due to bondholders 87,158 131,822 98,638 120,342 Other 20,439,358 208,536,087 209,430,474 19,544,971




EL PASO COUNTY, COLORADO RANCHO COLORADO FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL


Budgeted Amounts



ADDITIONS

Special assessments $ 64,205 $ 64,205 $ 41,586 $ (22,619)Interest 5 5 18 13

TOTAL ADDITIONS 64,210 64,210 41,604 (22,606)

DEDUCTIONS

Outside agencies 65,000 65,000 47,524 17,476


Change in net position $ (790) $ (790) $ (5,920) $ (5,130)



EL PASO COUNTY, COLORADO FALCON VISTA FUND



Budgeted Amounts



ADDITIONS

Special assessments $ 100,100 $ 100,100 $ 84,808 $ (15,292)Interest 100 100 114 14

TOTAL ADDITIONS 100,200 100,200 84,922 (15,278)

DEDUCTIONS

Debt service 100,000 100,000 92,718 7,282


Change in net position $ 200 $ 200 $ (7,796) $ (7,996)



EL PASO COUNTY, COLORADO PUBLIC IMPROVEMENT DISTRICT #1



Budgeted Amounts



ADDITIONS

Special assessments $ - $ 110,054 $ 128,238 $ 18,184Interest - - 105 105

TOTAL ADDITIONS - 110,054 128,343 18,289

DEDUCTIONS

Outside agencies - 300,000 300,000 -

TOTAL DEDUCTIONS - 300,000 300,000 -

Change in net position $ - $ (189,946) $ (171,657) $ 18,289



EL PASO COUNTY, COLORADO PUBLIC IMPROVEMENT DISTRICT #2



Budgeted Amounts



ADDITIONS

Special assessments $ - $ 10,054 $ 10,981 $ 927Interest - - 8 8

TOTAL ADDITIONS - 10,054 10,989 935

DEDUCTIONS

Outside agencies - 10,054 152 9,902

TOTAL DEDUCTIONS - 10,054 152 9,902




MISCELLANEOUS


EL PASO COUNTY, COLORADOHUMAN SERVICES FUND

SCHEDULE OF EBT AUTHORIZATIONS, WARRANT EXPENDITURES, AND TOTAL EXPENDITURESFOR THE YEAR ENDING DECEMBER 31, 2014

A B C D E

Program EBT County Share Expenditures EBT plus Total County

Authorizations of EBT Auth. by Warrant Warrant Exp Expenditures

Old Age Pension $ 6,571,365 $ 11,214 $ - $ 6,571,365 $ 11,214

LEAP $ 4,861,639 $ - $ 530,366 $ 5,392,005 $ 530,366

TANF $ 12,558,454 $ 2,276,819 $ 7,057,552 $ 19,616,006 $ 9,334,370

Administration** $ $ 2,229,700 $ 10,731,204 $ 12,960,904 $ 12,960,904

Child Welfare $ 23,902,147 $ 7,831,948 $ 19,578,748 $ 43,480,895 $ 27,410,696

Core Services $ 4,792,326 $ 762,004 $ 1,761,545 $ 6,553,871 $ 2,523,548

AND $ 1,995,246 $ 346,458 $ 119,305 $ 2,125,765 $ 465,764

IV-D Administration** $ - $ 1,131,905 $ 2,962,079 $ 4,093,984 $ 4,093,984

Child Care $ 8,235,996 $ 1,158,372 $ 659,566 $ 8,895,562 $ 1,817,937

Grants Settled in CFMS** $ - $ 1,490 $ 350,765 $ 352,255 $ 352,255

Grants/Other *** $ - $ - $ 1,056,832 $ - $ 1,056,832

Senior Services*** $ - $ - $ 336,959 $ - $ 336,959

Sub-Total $ 62,917,173 $ 15,749,910 $ 45,144,921 $ 110,042,612 $ 60,894,831

Food Assistance $ 111,039,557 $ - $ - $ 111,039,557 $ -

Grand Total $ 173,956,730 $ 15,749,910 $ 45,144,921 $ 221,082,169 $ 60,894,831

CFMS JDE

$ 220,455,768 $ 60,894,831

A. EBT Authorizations reflect Human Services payments authorized by El Paso County and paid by CDHS B. County Share of EBT Transactions are reported as a reduction of State cash advances to the County C. Expenditures by warrant reflects cash disbursements from the County D. EBT Authorizations (A) plus Warrants (C) reflects the total State, Federal and County participation in Human Services programs and recorded on a Cash Basis in the State Financial System (CFMS) E. Total County Expenditures reflects the net disbursements by warrant (C) plus County Share of EBTs (B) and recorded on a Modified Accrual Basis in the County Financial System ** All Administration expenditures are paid by warrant; therefore, Column (D) and Column (E) on this line are equal. *** Grants/Other and Senior Services reflect expenditures in the County Financial System Only, and may be noted on CFMS as settled outside CFMS See the accompanying independent auditors’ report.

Financial Planning 02/01

The public report burden for this information collection is estimated to average 380 hours annually. Form # 350-050-36

City or County:El Paso CountyYEAR ENDING :December 2014

This Information From The Records Of (example - City of _ or County of _): Prepared By: Nikki Simmons, Finance ManagerCounty of El Paso, Colorado Phone: 719-520-6461

A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal Highway

Taxes Taxes User Taxes Administration1. Total receipts available2. Minus amount used for collection expenses3. Minus amount used for nonhighway purposes4. Minus amount used for mass transit5. Remainder used for highway purposes

AMOUNT AMOUNTA. Receipts from local sources: A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2) 3,563,419 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: 6,567,010 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 447,445 2. General fund appropriations b. Snow and ice removal 1,257,551 3. Other local imposts (from page 2) 3,349,712 c. Other 4,622,749 4. Miscellaneous local receipts (from page 2) 4,779,143 d. Total (a. through c.) 6,327,745 5. Transfers from toll facilities 4. General administration & miscellaneous 2,168,619 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds - Original Issues 6. Total (1 through 5) 18,626,793 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.) 0 a. Interest 7. Total (1 through 6) 8,128,854 b. RedemptionB. Private Contributions c. Total (a. + b.) 0C. Receipts from State government 2. Notes: (from page 2) 12,449,158 a. InterestD. Receipts from Federal Government b. Redemption (from page 2) 660,135 c. Total (a. + b.) 0E. Total receipts (A.7 + B + C + D) 21,238,147 3. Total (1.c + 2.c) 0

C. Payments to State for highwaysD. Payments to toll facilitiesE. Total disbursements (A.6 + B.3 + C + D) 18,626,793

Opening Debt Amount Issued Redemptions Closing DebtA. Bonds (Total) 0 1. Bonds (Refunding Portion)B. Notes (Total) 0

A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation7,223,422 21,238,147 18,626,793 8,953,720 881,056

Notes and Comments: In 2014 the El Paso County's Fleet Department was moved from the Road & Bridge Fund into the County's GeneralFund. The El Paso County's Fleet Department inventory of $881,056 was transferred to General Fund causing a2014 restatement of Road & Bridge fund balance of $881,056.

FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page)


ITEM ITEM

IV. LOCAL HIGHWAY DEBT STATUS(Show all entries at par)

V. LOCAL ROAD AND STREET FUND BALANCE

AND STREET PURPOSES

LOCAL HIGHWAY FINANCE REPORT

I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE

ITEM

II. RECEIPTS FOR ROAD AND STREET PURPOSES III. DISBURSEMENTS FOR ROAD


STATE:ColoradoYEAR ENDING (mm/yy):December 2014

AMOUNT AMOUNTA.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assessments 1,939,122 a. Interest on investments 114 b. Other local imposts: b. Traffic Fines & Penalities 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Impact Fees 655,782 d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 0 4. Licenses f. Charges for Services 5. Specific Ownership &/or Other 754,807 g. Other Misc. Receipts 514,851 6. Total (1. through 5.) 1,410,589 h. Other 4,264,178 c. Total (a. + b.) 3,349,712 i. Total (a. through h.) 4,779,143

(Carry forward to page 1) (Carry forward to page 1)

AMOUNT AMOUNTC. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 11,767,130 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service 33,455 a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 682,028 d. Federal Transit Admin 579,473 d. Other (Specify) - DOLA Grant e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal 47,207 f. Total (a. through e.) 682,028 g. Total (a. through f.) 660,135 4. Total (1. + 2. + 3.f) 12,449,158 3. Total (1. + 2.g)

(Carry forward to page 1)

ON NATIONAL OFF NATIONALHIGHWAY HIGHWAY TOTALSYSTEM SYSTEM

(a) (b) (c)A.1. Capital outlay: a. Right-Of-Way Costs 0 0 b. Engineering Costs 638,765 638,765 c. Construction: (1). New Facilities 14,461 14,461 (2). Capacity Improvements 1,979,184 1,979,184 (3). System Preservation 892,634 892,634 (4). System Enhancement & Operation 38,375 38,375 (5). Total Construction (1) + (2) + (3) + (4) 1,979,184 945,470 2,924,653 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) 1,979,184 1,584,235 3,563,419

(Carry forward to page 1)

Notes and Comments:

FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE2

III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL

LOCAL HIGHWAY FINANCE REPORT

II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL

ITEM ITEM

ITEM ITEM



III. STATISTICAL SECTION


Statistical Section

This part of the El Paso County comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary

information says about the County's overall financial health.

FINANCIAL TRENDS

These schedules contain trend information to help the reader understand how the County's financial performance and fiscal health have changed over time.

Net Position by Component

Changes in Net Position Fund Balances, Governmental Funds

Changes in Fund Balances, Governmental Funds

REVENUE CAPACITY

These schedules contain information to help the reader assess the County's most significant sources of revenue.

Assessed Value and Actual Value of Taxable Property Direct and Overlapping Property Tax Rates

General Fund Property Tax Levies and Collections Property Taxes by Fund

Principal Sales Tax Payers Sales and Use Tax Collections by State Category

DEBT CAPACITY

These schedules contain information to help the reader assess the affordability of the County's current level of

debt and the County's ability to issue debt in the future.

Ratios of Outstanding Debt by Type

DEMOGRAPHIC AND ECONOMIC INFORMATION

These schedules offer demographic and economic indicators to help the reader understand the environment within which the County's financial activities take place.

Demographic and Economic Statistics

Principal Employers

OPERATING INFORMATION

This schedule contains information regarding the number of employees in various job categories and types of assets by function/department.

Full-Time Equivalent County Employees by Function/Program

Operating Indicators by Function/Program Capital Asset Statistics by Function/Program


FINANCIAL TRENDS


Black Forest Regional Park Tree Mitigation


Schedule 1 - Unaudited El Paso County Net Position by Component Last Ten Fiscal Years

Fiscal Year 2005 2006 2007 2008 Governmental activities Net investment in capital assets $ 135,624,461 $ 473,797,276 $ 568,270,750 $ 426,496,580 Restricted 5,652,345 5,763,652 11,650,811 15,786,029

Unrestricted 27,478,459 20,658,649 (104,993,011) (27,537,646)Total governmental activities net position 168,755,265 500,219,577 474,928,550 414,744,963

Business-type activities Net investment in capital assets 1,074,434 1,387,518 1,358,758 886,205 Unrestricted 4,283,618 3,219,917 2,662,302 1,480,954 Total business-type activities net position 5,358,052 4,607,435 4,021,060 2,367,159

Primary government Net investment in capital asset 136,698,895 475,184,794 569,629,508 427,382,785 Restricted 5,652,345 5,763,652 11,650,811 15,786,029 Unrestricted 31,762,077 23,878,566 (102,330,709) (26,056,692)Total primary government net position $ 174,113,317 $ 504,827,012 $ 478,949,610 $ 417,112,122

Data source: Statement of Net Position, EPC Financial Statements El Paso County Financial Statements


2009 2010 2011 2012 2013 2014

$ 432,326,238 $ 421,605,773 $ 408,258,511 $ 386,839,249 $ 378,815,025 $ 378,589,179 12,143,902 18,137,383 31,613,701 25,753,607 23,152,127 32,866,602 (19,957,838) (18,810,665) (34,744,060) (57,276,815) (65,951,812) (78,622,043) 424,512,302 420,932,491 405,128,152 355,316,041 336,015,340 332,833,738

864,976 1,412,817 1,418,042 1,373,439 1,329,309 1,285,181 1,346,726 516,836 382,867 435,992 466,906 568,953 2,211,702 1,929,653 1,800,909 1,809,431 1,796,215 1,854,134

433,191,214 423,018,590 409,676,553 388,212,688 380,144,334 379,874,360 12,143,902 18,137,383 31,613,701 25,753,607 23,152,127 32,866,602 (18,611,112) (18,293,829) (34,361,193) (56,840,823) (65,484,906) (78,053,090)

$ 426,724,004 $ 422,862,144 $ 406,929,061 $ 357,125,472 $ 337,811,555 $ 334,687,872


Schedule 2 - Unaudited El Paso County Changes in Net Position Last Ten Fiscal Years Fiscal Year Expenses 2005 2006 2007 2008 Governmental activities: General government $ 53,148,164 $ 49,588,735 $ 58,370,104 $ 44,543,821 Public safety 63,502,622 68,322,881 85,943,749 70,429,035 Public works 17,441,950 15,126,834 17,968,376 96,727,905 Health and welfare 52,030,311 54,071,254 59,075,189 53,492,404 Culture and recreation 3,293,236 3,049,572 3,774,357 2,942,434 Auxiliary services 461,330 276,546 1,255,626 2,003,860 Outside agencies - 6,636,067 6,132,634 4,613,511 Interest on long-term debt 4,665,637 4,571,516 6,578,057 5,700,186 Total governmental activities expenses 194,543,250 201,643,405 239,098,092 280,453,156 Business-type activities: Waste management 611,002 657,857 794,749 874,130 Land development 1,293,983 3,458,822 3,120,259 2,780,985 Total business-type activities expenses 1,904,985 4,116,679 3,915,008 3,655,115 Total primary government expenses 196,448,235 205,760,084 243,013,100 284,108,271

Program Revenues Governmental activities: Charges for services: General government 16,823,845 17,205,184 15,965,622 15,597,399 Public safety 2,961,540 2,743,137 3,266,421 3,842,816 Public works 99,519 358,491 602,212 1,892,183 Health and Welfare 392,601 575,555 383,931 402,884 Culture and recreation 419,361 410,763 542,084 4,336,800 Outside agencies 3,546 240,988 213,393 221,753 Operating grants and contributions 52,447,436 58,034,608 57,120,280 55,961,305 Capital grants and contributions 8,670,183 26,960,492 15,370,037 25,615,236 Total governmental activities program revenues 81,818,031 106,529,218 93,463,980 107,870,376 Business-type activities: Charges for services: Waste management 765,166 761,139 846,968 882,231 Land development 2,595,240 2,285,934 1,957,808 1,539,145 Operating grants and contributions - - - -Total business-type activities program revenues 3,360,406 3,047,073 2,804,776 2,421,376 Total primary government program revenues $ 85,178,437 $ 109,576,291 $ 96,268,756 $ 110,291,752

(Continued)


2009 2010 2011 2012 2013 2014

$ 40,459,544 $ 43,100,936 $ 46,367,966 $ 59,265,849 $ 58,162,963 $ 68,213,731 71,629,027 70,323,510 73,974,617 87,608,455 90,516,659 102,380,666 39,723,895 41,884,076 41,224,357 49,352,850 44,133,430 34,466,675 65,628,193 59,051,252 62,298,421 71,896,379 69,676,163 70,758,066 2,911,825 2,854,071 3,108,688 4,017,556 3,332,306 3,432,589 184,138 81,062 405,317 529,369 535,323 568,875 4,046,667 6,207,919 5,986,054 5,895,486 5,860,942 - 2,734,663 6,186,058 6,411,700 7,938,172 7,731,019 7,436,929 227,317,952 229,688,884 239,777,120 286,504,116 279,948,805 287,257,531 814,250 827,965 913,594 952,362 981,058 998,704 - - - - - - 814,250 827,965 913,594 952,362 981,058 998,704 228,132,202 230,516,849 240,690,714 287,456,478 280,929,863 288,256,235

16,888,532 19,453,228 22,969,843 25,954,492 27,369,375 25,107,711 4,695,479 5,273,240 5,138,506 5,032,350 6,736,549 6,008,910 1,963,976 652,189 209,252 711,194 1,070,430 1,170,633 165,172 243,041 293,282 152,199 160,391 156,654 618,382 617,047 568,749 675,916 908,101 785,649 240,898 224,440 225,825 54,413 94,023 - 73,028,190 74,376,558 66,637,356 69,900,661 70,868,809 84,646,148 22,988,775 6,118,913 5,987,521 12,653,521 9,644,943 14,524,609 120,589,404 106,958,656 102,030,334 115,134,746 116,852,621 132,400,314

730,278 790,000 882,726 952,671 957,064 1,034,755 - - - - - - - - - - - 21,635 730,278 790,000 882,726 952,671 967,064 1,056,390

$ 121,319,682 $ 107,748,656 $ 102,913,060 $ 116,087,417 $ 117,809,685 $ 133,456,704


Schedule 2 – Continued El Paso County Changes in Net Position Last Ten Fiscal Years

Fiscal Year Net (Expense) Revenue 2005 2006 2007 2008 Governmental activities $ (112,725,219) $ (95,114,187) $ (145,634,112) $ (172,582,780)Business-type activities 1,093,430 (1,069,606) (1,110,232) (1,233,739)Total primary government net expense (111,631,789) (96,183,793) 146,744,344 (173,816,519)

General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes 33,625,151 35,549,331 36,748,742 43,479,334 Sales taxes 67,839,928 68,520,201 69,146,880 50,098,470 Other taxes 9,184,444 11,392,744 9,931,960 9,409,854 Investment earnings 4,433,373 3,429,584 4,818,667 2,270,800 Gain/Loss on sale of capital assets 1,140,836 (179,211) 80,732 297,718 Transfers (17,648) (486,487) (383,896) 27,510 Total governmental activities 116,206,084 118,226,162 120,343,085 105,583,686 Business-type activities: Investment earnings 128,952 179,621 139,961 46,354 Loss on sale of capital assets (3,433,225) - - -Transfers 17,648 486,487 383,896 (27,510)Total business-type activities (3,286,625) 666,108 523,857 18,844 Total primary government 112,919,459 118,892,270 120,866,942 105,602,530

Change in Net Position Governmental activities 3,480,865 23,111,975 (25,291,027) (66,999,094)Business-type activities (2,193,195) (403,498) (586,375) (1,214,895)Total primary government $ 1,287,670 $ 22,708,477 $ (25,877,402) $ (68,213,989)


2009 2010 2011 2012 2013 2014

$ (106,728,548) $ (122,730,228) $ (137,746,786) $ (171,369,370) $ (163,096,184) $ (154,857,217) (83,972) (37,965) (30,868) 8,309 (13,389) 57,686 (106,812,520) (122,768,193) (137,777,654) (171,361,061) (163,109,573) (154,799,531)

44,657,977 46,165,964 47,311,463 42,920,278 43,587,576 43,584,455 58,722,451 56,432,810 58,259,187 75,207,266 86,971,156 90,841,733 15,242,819 15,717,611 15,703,573 15,817,127 16,212,257 16,929,457 355,449 373,076 374,538 201,608 270,118 319,970 82,816 362,773 195,502 15,022 - - 74,966 98,183 - - - - 119,136,478 119,150,417 121,844,263 134,161,301 147,041,107 151,675,615 3,481 1,953 308 213 173 233 - - - - - - (74,966) (98,183) - - - - (71,485) (96,230) 308 213 173 233 119,064,993 119,054,187 121,844,571 134,161,514 147,041,280 151,675,848

12,407,930 (3,579,811) (15,902,523) (37,208,069) (16,055,077) (3,181,602) (155,457) (134,195) (30,560) 8,522 (13,216) 57,919

$ 12,252,473 $ (3,714,006) $ (15,933,083) $ (37,199,547) $ (16,068,293) $ (3,123,683)

Data source: Statement of Activities El Paso County Financial Statements


Schedule 3 - Unaudited El Paso County Fund Balances, Governmental Funds Last Ten Fiscal Years

Fiscal Year 2005 2006 2007 2008 General Fund Non-spendable $ - $ - $ - $ - Restricted - - - - Committed - - - - Assigned - - - - Unrestricted - - - - Reserved 1,075,248 7,167,536 5,609,630 5,401,663 Unreserved 18,255,711 14,322,359 14,729,641 17,222,930 Total general fund 19,330,959 21,489,895 20,339,271 22,624,593 All Other Governmental Funds Non-spendable - - - - Restricted - - - - Committed - - - - Assigned - - - - Unrestricted - - - - Reserved 18,295,204 4,346,714 36,950,558 22,736,315 Unreserved, reported in: Special revenue funds 11,138,582 13,316,364 13,282,240 11,498,350 Capital projects funds 2,077,759 - - 778,640 Debt service funds - - - -Total all other governmental funds 31,511,545 17,663,078 50,232,798 35,013,305

Total governmental funds $ 50,842,504 $ 39,152,973 $ 70,572,069 $ 57,637,898

Data Source: Statement of Activities El Paso County Financial Statements * GASB 54 was implemented in 2011. Years 2011 and after are presented in compliance with GASB 54. Information for 2004 - 2010 is presented as before GASB-54 implementation. Data is not available to restate.


2009 2010 2011 2012 2013 2014

$ - $ - $ 377,254 $ 462,770 $ 805,176 $ 1,666,071 - - 6,446,587 6,653,514 7,693,246 14,126,448 - - 1,131,782 1,635,399 7,167,737 4,429,589 - - 21,716,258 17,370,988 18,212,599 6,438,541 - - 3,499,404 4,147,026 500,901 2,275,218 6,364,437 7,706,723 - - - - 28,545,587 29,885,543 - - - - 34,910,024 37,592,266 33,171,285 30,269,697 34,379,659 28,935,867 - - 2,198,308 1,758,568 2,422,657 1,898,716 - - 25,167,114 19,100,093 15,458,881 18,740,154 - - 1,777,863 1,802,389 1,096,611 338,253 - - 3,436,343 5,709,904 5,160,998 6,864,980 - - (517,775) (62,060) (35,445) - 14,483,922 45,449,515 - - - - 10,779,478 5,232,264 - - - -

- 1,402,989 - - - - - - - - - - 25,263,400 52,084,768 32,061,853 28,308,894 24,103,702 27,842,103

$ 60,173,424 $ 89,677,034 $ 65,233,138 $ 58,578,591 $ 58,483,361 $ 56,777,970


Schedule 4 - Unaudited El Paso County Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years Fiscal Year 2005 2006 2007 2008 Revenues Property taxes $ 33,625,151 $ 35,549,331 $ 36,748,742 $ 43,479,334 Sales taxes 67,839,928 68,520,201 69,146,880 50,098,470 Other taxes 9,184,444 11,392,744 9,931,960 9,409,854 Intergovernmental 52,479,434 55,345,530 53,512,924 62,439,883 Fees and fines 842,382 898,042 836,354 988,225 Licenses and permits 320,994 284,181 289,866 329,387 Charges for services 16,786,843 16,897,769 15,903,920 15,985,632 Investment earnings 4,428,366 3,431,443 4,785,997 2,270,801 Miscellaneous 5,432,838 8,193,869 7,918,558 11,990,328 Total revenues 190,940,380 200,513,110 199,075,201 196,991,914

Expenditures Current General government 49,601,464 45,367,491 43,575,692 37,247,537 Public safety 60,319,755 64,983,113 66,593,803 65,432,387 Public works 13,105,527 14,112,138 15,876,121 14,138,816 Health and welfare 50,630,532 52,662,497 51,648,706 51,394,991 Culture and recreation 2,928,470 2,726,991 2,837,235 2,648,490 Outside agencies - 6,636,067 5,473,129 4,401,352 Auxiliary services 345,991 328,360 581,234 412,422 Debt service: Principal 2,555,000 3,490,000 3,375,000 2,885,000 Interest and other charges 4,648,895 4,570,462 6,588,783 5,559,367 Issuance costs - - - 113,365 Capital outlay 46,409,060 16,895,596 10,230,546 31,110,585 Total expenditures 230,544,694 211,772,715 206,780,249 215,344,312 Excess of revenues over (under) expenditures (39,604,314) (11,259,605) (7,705,048) (18,352,398)

Other financing sources (uses) Refund of bond issuance costs/COP's - - - -Payment to refunding COP-agent - - - -Certificates of participation issued - - 39,429,749 2,500,000 Premium on certificates of participation - - - -Discount on bonds - - - -Capital lease financing - - - -Proceeds from sale of capital assets 1,155,648 56,561 78,291 297,718 Transfers in 13,473,846 18,702,244 16,638,988 7,252,751 Transfers out (13,131,247) (19,188,731) (17,022,884) (7,225,241)Total other financing sources (uses) 1,498,247 (429,926) 39,124,144 2,825,228

Net changes in fund balances $ (38,106,067) $ (11,689,531) $ 31,419,096 $ (15,527,170)

Debt service as a percentage of noncapital expenditures 3.91% 4.14% 5.07% 4.58% Data Source: El Paso County Financial Statements The 2008 and 2010 Debt service as a percentage of noncapital expenditures have been corrected for the presentation in the 2011 CAFR.


2009 2010 2011 2012 2013 2014

$ 44,657,977 $ 46,165,964 $ 47,311,463 $ 42,920,278 $ 43,587,576 $ 43,584,455 58,722,451 56,432,810 58,259,187 75,207,266 86,971,156 90,841,733 15,242,819 15,717,611 15,703,573 15,817,127 16,212,257 16,929,457 74,619,901 72,949,855 61,886,419 65,101,975 67,025,567 79,619,263 1,154,509 845,649 766,805 519,762 456,956 586,491 274,330 438,298 593,272 666,357 1,577,421 1,526,229 18,471,476 17,703,477 22,784,406 27,743,834 30,684,504 27,679,991 355,449 372,623 371,306 201,608 271,697 320,925 7,394,816 8,902,461 10,019,400 9,123,766 10,098,538 10,747,976 220,893,728 219,528,748 217,695,831 237,301,973 256,885,672 271,836,520

37,748,026 40,009,509 43,903,734 48,485,500 48,338,903 60,324,573 66,134,393 66,464,205 71,401,763 72,903,001 81,038,873 97,266,185 16,772,311 18,603,168 18,466,109 16,402,954 16,686,258 11,929,523 60,896,990 65,697,695 62,949,418 66,250,148 66,753,246 71,811,589 2,479,030 2,774,378 2,924,070 3,135,372 2,783,478 3,155,545 4,150,462 6,316,283 5,986,054 5,895,486 5,860,942 - 287,069 356,624 415,880 455,906 491,187 544,147 2,975,000 4,250,000 6,118,768 6,769,510 7,915,375 8,177,293 5,581,880 5,945,964 411,600 7,858,020 8,104,485 7,874,819 - 682,438 6,362,994 201,246 - - 18,861,177 35,694,283 27,772,512 20,012,664 18,443,459 17,179,810 215,886,338 246,794,547 246,712,902 248,369,807 256,416,206 278,263,484 5,007,390 (27,265,799) (29,017,071) (11,067,834) 469,466 (6,426,964)

- - 32,820,000 12,010,000 - - - - (35,412,037) (11,561,686) - - - 55,925,000 - - - - - 421,387 2,102,895 1,663,072 - - - 324,839 (232,632) - - - - - 4,999,998 - - 4,618,769 93,760 4,532,774 294,951 2,301,901 55,036 102,804 6,904,660 (4,434,591) - - - - (6,829,694) - - - - - 168,726 56,769,409 4,573,175 4,413,287 55,036 4,721,573

$ 5,176,116 $ 29,503,610 $ (24,443,896) $ (6,654,547) $ 524,502 $ (1,705,391) 4.34% 4.83% 5.70% 6.41% 6.73% 6.15 %


REVENUE CAPACITY


John Deere Tractor transformed into a Tumbleweed Eater


Schedule 5 El Paso County Assessed Value and Actual Value of Taxable Property Last Ten Fiscal Years

Assessment Year Payable

Ended in Vacant Residential Commercial Industrial AgriculturalDecember 31, Year Land Property Property Property Property

2005 2006 $ 335,975,160 $ 2,892,970,890 $ 1,723,592,810 $ 308,133,320 $ 14,523,730 2006 2007 327,623,600 3,032,146,110 1,775,643,960 302,573,000 14,489,940 2007 2008 411,181,000 3,476,511,140 1,998,462,020 311,518,010 15,032,210 2008 2009 403,977,710 3,553,447,120 2,077,273,830 237,821,480 14,805,920 2009 2010 406,086,530 3,698,915,150 2,189,684,690 229,551,730 14,665,810 2010 2011 376,811,560 3,730,236,120 2,182,991,990 232,133,550 14,431,970 2011 2012 313,948,570 3,478,431,600 2,010,579,100 229,697,330 13,285,400 2012 2013 300,459,180 3,507,471,170 1,746,010,570 126,334,870 13,206,340 2013 2014 291,843,530 3,494,373,880 2,007,606,090 247,188,270 13,728,040 2014 2015 275,803,640 3,562,258,110 2,028,632,390 236,062,500 13,762,980

Notes: *Total Taxable Assessed Value is already adjusted for tax exempt property value. **New Construction value is already adjusted into the appropriate category. ***Abatement values are adjusted in the "payable in" mill levy. Data Source: El Paso County Assessor's Office Abstracts of Assessment Certification of Assessed Valuation


Total Oil Total Taxable Direct Natural and Public Assessed Tax *Tax-Exempt ** New *** Abatement Resources Gas Utilities Value Rate Property Construction Value

$ 7,566,860 $ - $ 241,063,500 $ 5,523,826,270 7.673 $ 1,264,464,180 $ 208,617,540 $ 283,944 8,026,450 - 248,220,800 5,708,723,860 7.710 1,282,937,580 236,474,950 184,966 7,955,940 - 269,088,800 6,489,749,120 7.514 1,463,061,020 282,083,150 246,116 9,705,240 - 281,115,200 6,578,146,500 7.583 1,512,133,950 239,291,400 451,029 8,325,440 - 278,262,800 6,825,492,150 7.531 1,549,584,850 174,719,260 434,805 6,502,350 - 287,006,000 6,830,113,540 7.537 1,571,803,170 99,557,470 473,833 6,350,220 5,040 269,462,900 6,321,760,160 7.597 1,571,401,630 67,113,150 379,512 5,758,010 - 260,564,000 6,334,487,370 7.663 1,585,165,900 - - 5,752,860 81,420 277,390,880 6,337,964,970 7.714 1,588,612,250 - - 6,016,310 - 317,449,500 6,439,985,430 7.791 1,620,634,570 - -


Schedule 6 El Paso County Direct and Overlapping Property Tax Rates Current and Last Ten Fiscal Years Taxes Payable 2006 2007 2008 2009 Assessment Year 2005 2006 2007 2008 County direct rates General 2.599 2.179 4.182 5.144 Abatement 0.057 0.037 0.037 0.069 Road & Bridge 1.582 1.568 1.280 0.330 Social Services 1.319 1.290 0.000 0.000 Capital 0.963 1.450 1.320 1.390 Insurance 0.400 0.450 0.000 0.000 Retirement 0.753 0.736 0.695 0.650 Total County direct rates 7.673 7.710 7.514 7.583 City and town rates Calhan 17.525 17.563 17.563 17.563 Colorado Springs 4.944 4.944 4.944 4.944 Fountain 10.239 10.239 10.239 10.239 Green Mountain Falls 14.588 14.588 15.558 14.558 Manitou Springs 17.284 17.284 15.951 15.951 Monument 5.872 6.458 6.289 6.289 Palmer Lake 19.070 16.544 15.340 16.180 Ramah 19.827 19.827 19.827 19.827 Levy Ranges for the following districts are: Fire Protection Districts 2.130-12.527 2.322-12.660 1.635-12.423 1.479-12.423Sanitation Districts 0.650-3.759 0.650-4.134 0.650-4.500 0.579-4.501Water Districts 0.532-14.437 0.532-14.437 0.534-14.437 0.430-14.437Sanitation & Water Districts 3.831-26.995 4.142-31.840 4.065-31.423 4.001-33.070Special Improvement Districts 1.000-45.000 1.000-45.000 1.000-51.000 1.000-51.000Regional Library District 3.296 3.515 3.325 3.540 Metropolitan Districts 2.068-100.000 2.068-100.000 2.031-100.000 1.927-100.000School Districts 20.096-60.216 19.699-60.216 19.715-60.216 24.301-60.216 TABOR requires the vote of the people to increase tax rates. Note: Mill Rates for Taxes Payable in 2013 with Assessment Year of 2012 has been corrected. Data Source: El Paso County Assessor’s Office Abstracts of Assessment


2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014

4.612 3.109 3.844 4.141 7.384

0.064 0.070 0.060 0.066 0.051 0.077 0.330 0.330 0.330 0.330 0.330 0.330 0.000 0.000 0.000 0.000 0.000 0.000 1.330 1.655 3.080 2.500 2.200 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.790 0.870 1.018 0.923 0.992 0.000 2.514 7.537 7.597 7.663 7.714 7.791

17.563 17.563 19.563 17.563 17.563 17.563 4.279 4.279 4.279 4.279 4.279 4.279

10.239 10.239 10.239 10.239 10.239 10.239 13.588 14.588 14.588 17.588 17.588 17.588 15.750 15.750 15.750 12.070 12.060 12.050 6.289 6.289 6.289 6.289 6.289 6.289

15.989 16.459 16.459 16.459 16.459 16.459 19.827 19.827 19.827 19.827 19.827 19.827

1.357-12.423 1.31-12.423 1.191-12.423 1.164 - 13.2 1.167 - 14.390 1.141 - 15.29 0.621-4.500 0.549-4.654 0.549-5.334 0.573 - 5.534 0.578 - 5.755 0.578 - 6.101

0.445-14.437 0.454-14.437 0.495-16.803 0.478 - 17.709 0.478 - 17.872 0.478 - 18.574 6.950-29.055 6.95-30.986 5.500-35.508 5.805 - 37.471 2.937 - 34.956 2.937 - 41.288 1.000-51.000 1.000-51.000 1.000-51.000 1.0 - 59.42 1.000 - 51.000 1.000 - 51.000

3.468 3.556 3.999 4.030 4.000 4.000 0.450-100.000 0.440-100.000 0.440-100.000 0.440 - 83.0 0.440 - 100.0 0.440 - 100.0 24.436-60.216 23.538-60.216 24.723-60.216 24.703 - 60.216 24.726 - 60.216 24.775 - 60.216


Schedule 7 El Paso County General Fund Property Tax Levies and Collections Last Ten Fiscal Years

Fiscal Collected within the Year Taxes Levied Fiscal Year of the Levy Collections in Total Collections to Date

Ended for the Percentage Subsequent PercentageDecember 31, Fiscal Year Amount of Levy Years Amount of Levy

2005 $ 13,231,072 $ 13,163,179 99.49% $ (28,822)* $ 13,134,357 99.27% 2006 13,038,236 12,812,122 98.27% 4,145 12,816,267 98.30% 2007 11,128,530 11,087,810 99.63% 17,856 11,105,666 99.79% 2008 24,354,955 24,213,913 99.42% 65,891 24,279,804 99.69% 2009 30,839,804 30,648,628 99.38% 63,123 30,711,751 99.58% 2010 31,311,340 31,094,884 99.31% 59,874 31,154,758 99.50% 2011 29,956,511 29,776,229 99.40% (40,581)* 29,735,648 99.90% 2012 18,010,412 17,870,639 99.22% 78,939 17,949,578 99.66% 2013 22,332,783 22,222,512 99.51% 52,071 22,274,584 99.74% 2014 29,396,268 29,266,912 99.56% 9,229 29,276,141 99.59%

The 2008 and 2009 Tax Levies and collections were corrected for presentation in the 2010 CAFR. ( )* A citizen that has paid for property taxes may request an abatement (refund) for the past two years plus the current year. When abatements pertaining to prior years' exceed the prior years' tax collections it will reflect as a negative amount in the "Collections for Subsequent Years" column.


Ute Pass Regional Trail


Schedule 8 El Paso County Property Taxes by Fund Last Ten Fiscal Years

Fiscal Year 2005 2006 2007 2008

Revenues Property taxes Fund 1 - General Fund $ 13,174,322 $ 12,859,410 $ 11,123,814 $ 24,254,481 Fund 2 - Road & Bridge 7,273,309 8,050,759 8,250,816 7,684,574 Fund 4 - Department of Human Services 5,660,950 6,362,084 6,446,458 (10,012) Fund 6 - Capital Improvement Fund 4,391,718 4,644,995 7,249,650 7,566,985 Fund 16 - Retirement Fund 3,124,852 3,632,083 3,678,004 3,983,306 Fund 12 - Self Insurance Fund* 1,290,695 1,929,110 2,248,249 - Total Property Tax Revenue $ 34,915,846 $ 37,478,441 $ 38,996,991 $ 43,479,334

*The Self Insurance Fund is an Internal Services Fund; therefore, the property taxes credited to that fund do not show in the Government Wide Financial Statement. Data Source: El Paso County Financial Statements


2009 2010 2011 2012 2013 2014

$ 30,678,405 $ 31,122,339 $ 29,776,229 $ 17,870,640 $ 22,222,512 $ 29,266,912 2,002,020 2,092,121 2,094,348 1,936,902 1,947,715 1,939,123 - - - - - - 8,161,662 8,124,020 10,121,707 17,375,089 14,182,145 12,378,420 3,815,890 4,827,484 5,319,179 5,737,647 5,235,204 - - - - - - -

$ 44,657,977 $ 46,165,964 $ 47,311,463 $ 42,920,278 $ 43,587,576 $ 43,584,455


Schedule 9 El Paso County Principal Sales Tax Payers Current Year and Nine Years Ago

2014 2005 % of Total % of Total County County Sales Tax Sales Tax Sales Tax Sales TaxTaxpayer Collected Rank Collected Collected Rank CollectedWalMart Stores, Inc. $ 4,729,441 1 6.04% City of Colorado Springs Utilities 2,241,525 2 2.86% $ 1,408,603 1 2.21%Lowe's HIW, Inc. 1,718,236 3 2.19% Home Depot USA, Inc. 1,629,410 4 2.08% Broadmoor Hotel, Inc. 1,495,448 5 1.91% 922,350 3 1.45%Target Corporation 1,448,941 6 1.85% Costco Wholesale Corp 1,353,863 7 1.73% Verizon Wireless (VAW) LLC 1,238,513 8 1.58% Dillon Companies/Kroger 963,306 9 1.23% Heuberger Motors Inc. 912,911 10 1.17% US West Communications 1,060,501 2 1.67%WalMart Stores 1434 600,917 4 0.94%Lowe's HIW 1099 600,342 5 0.94%WalMart Stores 3582 599,725 6 0.94%WalMart Stores 1896 597,223 7 0.94%Home Lumber 549,908 8 0.86%WalMart Stores 5123 540,751 9 0.85%WalMart Stores 1273 538,272 10 0.85%

Total $ 17,731,594 22.63% $ 7,811,522 12.26%

Data Source: El Paso County Financial Statements Colorado Department of Revenue


Schedule 10

El Paso County

Sales and Use Tax Collections by State Category

Last Nine Fiscal Years

2006 2007 2008 2009 2010 2011 2012 2013 2014

Retail Trade $ 36,922,250 $ 37,293,082 $ 35,524,870 $ 33,841,812 $ 35,897,986 $ 37,406,489 $ 40,291,234 $ 52,016,333 $ 54,519,334

Food Services 7,050,884 7,393,208 7,740,190 7,763,114 8,070,771 8,407,642 9,080,980 11,506,575 12,153,093

Information (Magazines,

Newspapers, Etc) 4,185,098 4,491,136 4,721,030 4,763,640 4,693,512 4,268,166 4,349,358 5,742,631 5,804,560

Wholesale Trade 3,181,573 3,027,182 3,270,391 2,447,969 2,829,795 2,641,184 2,765,390 3,425,124 3,900,413

Accommodations 2,477,041 2,692,975 2,770,583 2,441,293 2,457,583 2,710,502 2,514,101 3,304,999 3,554,791

Real Estate and Rental & Leasing 2,008,492 2,109,742 2,135,208 1,718,211 1,619,745 1,530,237 1,463,676 1,926,810 2,151,403

Manufacturing 2,239,192 1,963,989 1,752,373 1,584,748 1,541,106 1,989,234 2,524,664 3,265,568 3,841,170

Utilities 1,435,490 1,567,037 1,769,058 1,487,408 1,564,556 1,764,030 1,869,553 2,348,062 2,444,738

Other Services (except

Public Admin) 1,426,802 1,539,602 1,494,570 1,438,541 1,490,607 1,526,585 1,638,749 1,982,092 2,121,983

Construction 1,028,933 979,962 800,667 608,987 699,674 761,574 1,166,426 1,432,089 1,655,433

Professional, Scientific, and

Technical Services 753,136 528,903 588,207 543,422 809,231 599,824 686,215 1,092,019 704,538

Finance and Insurance 369,030 382,977 426,649 448,502 430,360 489,974 460,402 572,430 589,510

Arts, Entertainment, &

Recreation 322,994 316,552 330,207 312,605 315,104 342,311 365,250 475,382 426,138

Waste Management &

Remediation Services 290,814 282,330 244,267 241,640 215,568 241,770 236,490 303,262 306,892

Mining 275,566 222,611 196,320 155,299 154,633 167,484 198,869 326,983 351,283

Educational Services 133,137 137,877 146,871 151,893 160,237 168,587 175,845 213,356 216,598

Health Care & Social Assistance 101,896 103,532 119,758 109,816 124,779 132,906 139,476 188,272 142,505

Transportation & Warehousing 89,976 115,930 124,775 74,855 37,435 40,945 62,666 76,392 76,646

Agriculture, Forestry,

Fishing & Hunting 66,006 75,391 58,190 57,695 90,248 103,424 120,376 141,331 133,315

Public Administration 35,979 31,670 37,434 35,804 40,923 42,987 50,136 64,667 66,486

Category Not Specified 43,688 53,588 78,441 45,558 173,857 (1,886) 11,560 7,128 (32,028)

Tobacco Tax 111,123 106,327 108,153 109,189 114,764 117,810 103,208 104,636 106,331

Total Sales Tax: $ 64,549,101 $65,415,603 $ 64,438,211 $ 60,382,001 $ 63,532,474 $ 65,451,779 $ 70,274,624 $ 90,516,141 $ 95,235,132

Clerk and Recorder Collections $ 3,128,503 $ 3,077,092 $ 2,848,576 $ 2,561,135 $ 2,633,983 $ 2,827,992 $ 3,228,003 $ 4,209,854 $ 4,812,397

Regional Building Use Tax - - - 162,655 273,784 254,107 312,003 287,611 406,529

Building Materials 842,597 654,185 622,505 1,694,813 1,124,758 856,458 1,392,448 1,616,726 1,004,300

Total Use Tax: $ 3,971,100 $ 3,731,277 $ 3,471,081 $ 4,418,603 $ 4,032,525 $ 3,938,557 $ 4,932,454 $ 6,114,191 $ 6,223,226

Total Sales and Use Tax: $ 68,520,201 $69,146,880 $ 67,909,292 $ 64,800,604 $ 67,564,999 $ 69,390,336 $ 75,207,078 $ 96,630,332 $ 101,458,358

Source: Colorado Department of Revenue Notes:

The above totals will not equate to the Sales Tax totals on the Statement of Activities because the Sales Tax allocated to Internal Services Fund (Self Insurance) is eliminated as well as timing differences on collections for prior periods.


DEBT CAPACITY


Schedule 11 El Paso County Ratios of Outstanding Debt by Type Last Ten Fiscal Years

Governmental Activities Certificates Total Percentage EPC of Capital Primary of Personal Debt

Fiscal Year Participation Leases Government Income Per Capita*

2005 $ 96,816,254 $ 250,907 $ 97,067,161 0.48% $ 170 2006 93,258,727 115,880 93,374,607 0.44% 160 2007 123,912,359 1,716,693 125,629,052 0.55% 213 2008 126,465,215 1,168,921 127,634,136 0.55% 213 2009 120,309,103 597,047 120,906,150 0.52% 199 2010 172,193,855 - 172,193,855 0.71% 277 2011 166,148,666 3,736,230 169,884,896 0.66% 267 2012 174,251,235 2,501,720 176,752,955 0.66% 274 2013 169,487,902 1,256,345 170,744,247 0.63% 261 2014 162,243,456 4,607,822 166,851,278 ** 251

Notes: The Certificates of Participation amounts have been updated to reflect totals net of related premiums and discounts. *Data revised in 2014 with most recent information from the Bureau of Economic Analysis **Data not available Data sources: El Paso County Financial Statements US Department of Commerce Bureau of Economic Analysis


El Paso County Veterans Monument Dedication


DEMOGRAPHIC AND ECONOMIC INFORMATION


Schedule 12 El Paso County Demographic and Economic Statistics Last Ten Calendar Years Population * Per Capita Personal Income ** Change Change El Paso County from from Total as a Prior El Paso Prior Personal El Paso Percentage

Year Colorado Period County Period Income Colorado County of Colorado

2005 4,662,534 1.15% 569,322 1.91% $ 19,863,082 $ 38,407 $ 35,226 88.33% 2006 4,745,660 1.75% 582,502 2.26% 21,153,799 40,627 36,563 86.53% 2007 4,821,784 1.58% 588,772 1.06% 22,348,406 42,199 38,190 87.54% 2008 4,901,938 1.64% 599,060 1.72% 22,968,329 43,406 38,507 86.77% 2009 4,976,853 1.51% 608,518 1.55% 23,193,879 41,515 38,254 90.35% 2010 5,029,196 1.47% 622,263 2.96% 24,123,028 41,717 38,600 90.61% 2011 5,116,302 1.35% 637,302 1.23% 25,470,641 44,179 40,246 88.46% 2012 5,189,458 1.31% 644,964 1.56% 26,374,299 45,775 41,061 89.33% 2013 5,268,367 1.52% 654,928 1.54% 27,824,885 47,043 41,128 90.66% 2014 5,355,866 1.66% 665,891 1.67% 26,940,874 48,730 **** 84.40%

Notes: * Data revised in 2014 with most recent information from the Colorado Division of Local Government ** Data revised in 2014 with most recent information from the Bureau of Economic Analysis *** Data revised in 2014 with the most recent information from the Colorado Division of Labor and Employment **** 2014 Data not available Data source: El Paso County Clerk and Recorder Colorado Department of Education Colorado Division of Local Government Colorado Division of Labor and Employment US Department of Commerce Bureau of Economic Analysis


El Paso Civilian County Labor Force *** Public Motor

Employed Unemployed Unemployment School Vehicles Rate Enrollment Registered

276,399 15,689 5.40% 103,069 445,909 285,523 13,805 4.60% 104,608 443,464 286,878 12,916 4.30% 105,157 479,917 284,947 16,952 5.60% 105,845 484,033 275,465 26,473 8.80% 109,246 487,456 272,571 29,462 9.80% 109,962 495,418 272,831 27,722 9.20% 111,318 498,573 301,831 26,259 8.70% 126,274 508,616 274,091 21,325 8.00% 116,061 515,108 278,409 14,199 5.10% 113,837 529,595


Schedule 13 El Paso County Principal Employers Current Year and Nine Years Ago 2014 2005 Percentage of Total El Paso County Percentage of Total El Paso CountyEmployer Employees Rank Employment Employees Rank Employment Fort Carson 31,800 1 11.52% - - Peterson Air Force Base 11,917 2 3.87% - - Schriever Air Force Base 7,647 3 3.55% - - United States Air Force Academy 7,583 4 2.98% - - Colorado Springs School District 11 3,978 5 1.70% - - School District #20 - Air Academy 3,226 6 1.44% - - Memorial Hospital - UC Health 3,146 7 1.03% - - Penrose-St. Francis Health Services 2,833 8 .99% 2,956 2 1.09% City of Colorado Springs* 2,300 9 .83% - - El Paso County* 2,100 10 .76% - - Atmel Corporation - - 2,000 5 0.73% Broadmoor Hotel - - 1,650 8 0.61% WalMart Stores, Inc. - - 3,292 1 1.21% Hewlett Packard - - 2,300 3 0.84% Lockheed Martin Corp. - - 2,100 4 0.77% MCI - - 1,900 6 0.70% King Soopers - - 1,793 7 0.66% Safeway - - 1,427 9 0.52% Wells Fargo - - 1,226 10 0.45% 76,530 - 20,644 -

El Paso County Total Employment 278,409 272,215 Data Source: various, including Colorado Springs Business Journal, journals, annual reports, company web sites and CDLE Labor Market Information *2005 Government employees statistics/data not available


OPERATING INFORMATION


Schedule 14 El Paso County Full-time Equivalent County Government Employees by Function/Program Last Ten Fiscal Years Full-time Equivalent Employees Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 County Commissioners 5 5 5 5 5 5 5 5 5 5 Internal Audit - 2 - - - - - - - -County Assessor 66 66 66 66 52 52 52 52 52 52 County Clerk & Recorder - Operations 26 26 26 26 24 24 24 24 24 45

Motor Vehicle 79 83 83 83 70 70 70 73 73 73 Elections 17 17 17 17 14 14 14 14 14 10 Driver's Licenses 4 5 5 5 3 3 3 3 3 8

County Coroner 13 13 16 18 18 19 20 20 20 21 County Sheriff - Operations 231 239 240 248 238 243 285 285 428 432

Detentions 336 359 362 382 362 362 347 347 359 354 County Treasurer 19 19 19 19 19 19 19 19 19 19 Public Trustee 14 14 14 14 12 12 12 8 8 6 County Attorney - General Fund 8 10 9 9 9 9 9 10 10 10

Useful Public Service - 2 - - - - - - - -Dept. of Human Services 23 17 17 18 18 18 18 19 19 21 Employment Services - 7 6 - - - - - - -

District Attorney - EPC Funded 157 163 177 186 183 183 183 183 183 201 Teller County Funded 1 1 1 1 1 4 4 4 1 1 Grant Funded 10 13 13 13 13 14 14 14 9 9

Human Services - General 361 360 360 362 362 414 383 390 390 416 Senior Services 4 3 3 2 1 1 1 1 1 1 Veterans Services 4 4 4 4 3 3 3 4 4 5 Pikes Peak Workforce Center 100 100 100 100 65 65 65 65 51 51 Administrative Services - Administration 5 4 5 6 4 4 4 4 4 2

CSU Extension 4 4 4 - - - - 3 3 3 Development Services 30 36 34 32 21 24 23 23 23 23 Land Use Study 5 5 5 - - - - - - -Budget and Economic Development 4 - - 8 8 12 16 16 17 23 Employee Benefits/Med Serv 8 12 16 18 12 13 18 18 18 23 Environmental Services 9 9 10 8 3 4 - - 3 5 Facilities 51 51 51 52 31 31 31 49 49 53 Finance 24 25 25 16 12 15 35 37 45 45 *Fleet Services 32 32 33 33 - - - - - 32 Human Resources 5 - - - - - - - - -Information Services 69 68 69 69 66 70 70 72 72 72 Justice Services 17 15 15 14 1 1 1 1 1 1 Procurements & Contracts 7 7 7 7 6 6 6 7 7 7 Public Communications - 4 3 2 2 2 4 4 5 6 Risk Management 4 - - - - - - - - -Security 44 45 45 38 29 30 30 31 31 34 Solid Waste 4 4 4 5 5 5 5 6 4 4 800 MHz 1 1 1 1 - - - - - -

Parks & Community Resources - Parks 41 41 41 41 29 29 29 35 28 32 Penrose Equestrian Center 10 - - - - - - - - -

Transportation - Engineering 30 24 24 - - - - - - -*Road & Bridge 162 166 164 188 175 187 187 201 201 169 Health and Environment 194 194 225 219 160 178 178 178 141 138 Retirement 3 3 3 3 2 3 3 3 3 2 Total 2,241 2,278 2,327 2,338 2,038 2,148 2,171 2,228 2,328 2,414 Data Source: El Paso County Final Budget *Fleet and Road & Bridge were separated in 2014.


Waldo Canyon Flood Mitigation


Schedule 15 El Paso County Operating Indicators by Function/Program Last Ten Fiscal Years Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 BoCC Administrative Services Board Meetings 125 130 148 92 103 93 100 88 76 75 Board/Committee/Commission Appointments 122 73 94 116 135 120 104 106 109 115 Facilities Management Number of buildings maintained 124 118 120 126 126 128 132 131 130 130 Square feet total maintained 2,414,566 2,343,423 2,124,011 2,235,781 2,236,000 2,241,501 2,949,191 3,070,453 3,164,384 3,164,384 Parks Acres of Regional Parks, Recreation areas and conservation lands 5,500 5,900 6,900 7,100 7,044 7,044 6,585 6,585 6,585 8,000 Miles of Regional, Park & Nature Trails 85 87 93 85 92 92 101 101 101 105 County Office Sites (landscape maintenance) 10 11 11 8 21 8 9 8 11 11 Procurement and Contracts Purchase Orders Issued 875 1,000 1,000 584 656 751 835 751 963 1,208 Purchase Orders Issued (dollars) 60,000,000 70,000,000 75,000,000 53,922,017 58,760,700 102,556,780 91,458,617 86,926,957 95,971,781 90,979,051 Surplus sales ($) 250,000 275,000 275,000 118,574 99,711 101,256 122,406 72,920 62,835 134,358 Financial/Budget Payroll Serviced 54,062 52,673 52,937 56,845 53,960 55,952 55,500 57,939 63,125 66,555 Journal Entries Processed 24,711 26,078 26,860 19,920 21,312 22,173 22,247 31,240 67,181 64,481 Processed Payment Requests 63,376 67,739 71,125 57,716 49,198 57,181 60,750 61,421 73,967 75,165 Budget Entries Processed 4,597 3,687 3,969 3,005 2,857 2,899 2,390 3,468 4,151 2,885 Public safety Claims Submitted 2,338 3,185 3,200 3,215 3,228 3,244 3,257 3,291 3,312 3,334 Personal Contacts (excl DSS) 8,640 8,800 9,200 9,494 9,925 10,322 10,714 10,757 10,799 10,842 Telephone Information 23,292 23,500 24,000 24,362 24,880 25,327 25,758 26,196 26,600 27,053 Medicaid Nursing Home Clients 50 50 50 50 50 53 53 51 52 54 Briefings on VA Benefits 1,630 2,450 2,500 2,551 2,603 5,697 6,037 4,629 3,458 4,267 HS quality assurance inquiries 130 675 700 726 753 1,527 1,539 1,542 1,558 1,564 Human Services - Senior Services Number seniors/participation levels 3,500 3,900 4,100 4,310 4,431 4,620 4,781 4,947 5,026 5,106 CSU Extension Printed brochures and SIAs 142,555 142,820 142,820 142,820 40,000 117,145 117,145 55,000 55,500 45,000 Phone, walk-in, individual 72,770 73,125 73,125 73,125 25,000 61,095 61,095 12,780 16,240 18,000 County Attorney - General Fund Board of Equalization 650 640 650 650 650 650 655 650 650 650 Contracts/Agreements (drafted or reviewed) 425 435 440 460 450 455 435 450 461 470 Litigation (for and against the county) 820 820 830 800 760 205 180 123 105 102 Liquor License matters 18 18 20 24 25 20 26 6 6 5 Notices of Claims reviewed 35 36 40 41 40 32 30 47 63 71 Ordinances (new) 1 1 1 1 1 2 - 5 4 1 Resolutions (drafted or reviewed) 180 180 185 190 210 200 240 145 150 155 Written legal opinions 85 95 110 120 150 185 200 215 243 270 Meetings/hearings attended 925 940 930 980 1,030 1,045 1,110 1,210 1,235 1,210 Safety and Risk Management Safety Training Seminars -- Attendance - - - - - 11 4 4 6 3 Personal Safety & Awareness consultations 325 350 350 350 350 350 33 37 29 10 Wellness programs 24 25 25 23 27 63 85 100 97 119 Employee orientations 292 300 300 299 233 26 24 24 26 26 Safety training/meetings - - - - 13 11 61 70 78 118 Safety/wellness publications/website information 16 16 16 - 7 10 11 36 65 64 Risk management & insurance consultations 1,200 1,500 1,500 1,500 1,500 89 15 17 12 16 Clerk and Recorder Documents recorded 203,454 200,000 190,000 138,048 150,587 135,516 131,805 157,392 153,576 121,600 Documents processed 262,312 228,000 216,600 169,223 181,458 168,253 162,674 192,779 188,958 157,647 Meetings (agendas, minutes, etc.) 2,000 2,000 2,000 2,737 2,798 2,055 2,050 2,551 2,802 2,267 Vehicles Registered 451,803 452,598 459,387 484,033 487,456 495,418 498,573 508,616 515,108 529,595 Drivers Licenses Issued 53,499 45,450 39,440 38,306 31,918 51,833 59,722 76,959 67,922 68,396 Number of precincts 381 386 396 388 404 405 405 199 199 199 Ballot Combinations 35 35 80 87 26 60 44 44 27 65 Registered Voters 340,000 343,000 360,000 374,582 335,880 364,831 382,079 426,355 413,830 427,640 Jurisdictions for which elections are administered 170 170 180 261 265 268 271 271 271 273 Worker's Compensation Fund Workers' Compensation claims 350 378 395 262 204 162 160 163 151 186 Claims cost ($) 486,593 1,800,000 2,000,000 2,575,271 1,522,550 1,327,492 1,089,136 1,327,492 1,213,215 1,022,427 (Continued)


Schedule 15 - Continued Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 County Treasurer Annual Tax Statements 231,896 238,495 245,295 272,965 244,740 243,846 243,389 244,236 243,389 245,309 Delinquent Tax Statements 13,521 13,288 13,600 14,116 16,424 15,103 15,538 14,952 12,782 13,409 Property Tax Payments Processed 376,266 380,000 390,000 405,206 448,415 406,865 407,756 407,559 407,492 409,710 Tax roll changes (abatements) 1,200 1,000 1,000 1,418 1,097 1,256 1,105 903 912 1,261 Non-property tax revenue transactions 26,000 28,500 29,000 25,213 22,807 23,059 19,655 35,442 35,834 34,453 Tax Liens Sold--manufactured housing 240 200 200 207 173 93 107 105 54 47 Tax Liens Sold--real estate 2,000 1,800 2,000 3,282 4,166 2,486 2,719 2,367 1,786 1,877 Tax Liens redeemed 2,100 2,100 2,100 2,145 3,137 4,023 3,102 2,848 2,785 2,452 Tax Deeds issued 20 20 20 12 10 20 53 26 39 18 Certificates of Taxes Due Reports 72,000 50,000 50,000 30,739 37,168 28,711 44,139 33,769 30,410 27,646 County warrants paid 33,500 33,500 33,500 25,083 18,433 17,549 12,750 12,965 13,159 13,213 County Assessor Abstracts provided to all taxing entities 162 200 227 258 260 265 265 269 273 275 Telephone calls handled 55,400 47,000 45,000 49,113 32,507 26,962 32,160 34,956 37,872 27,500 Maps produced for the public 900 1,400 2,095 700 300 255 110 274 109 174 Appeals heard by the assessor 5,151 951 8,000 2,150 9,496 1,892 4,752 887 1,853 775 Residences inventoried and measured 6,500 7,156 5,372 4,206 2,233 1,521 1,615 1,407 2,164 1,676 Property transfers logged 50,000 44,000 42,000 29,589 29,243 25,780 29,252 34,606 37,219 34,904 District Attorney Felony cases prosecuted 6,120 6,342 6,596 4,793 4,401 4,123 3,920 4,344 4,586 4,169 Traffic and misdemeanor cases prosecuted 47,470 31,040 32,188 32,543 29,596 27,980 25,786 23,575 22,705 24,876 Juvenile cases prosecuted 1,976 1,924 1,989 1,875 1,512 1,494 1,166 1,121 1,088 844 Sheriff's Office Detentions Average daily population - Metro & CJC 1,425 1,427 1,477 1,538 1,499 1,360 1,377 1,380 1,485 1,483 Initial inmate classifications 24,000 25,008 25,063 19,220 18,902 18,966 16,379 15,066 20,469 16,408 Total attendance, Inmate programs - CJC 50,000 54,000 55,000 43,981 54,273 59,577 60,786 45,298 31,009 38,416 Number of commitments 24,782 25,008 25,063 23,068 27,280 24,661 21,641 20,658 20,834 22,203 Number of releases 22,482 24,734 24,800 22,982 21,132 24,725 21,814 20,858 20,772 19,547 Number of prisoner transports 22,993 34,872 38,359 23,924 19,620 21,103 31,880 20,361 20,471 22,970 Department of Transportation Miles of road graveled 80 66 50 13 39 21 28 16 8 15 Miles of dust control applied 123 123 123 116 36 35 108 100 66 6 Miles of surface treatment applied - - 19 30 32 34 32 54 51 76 Drainage crosspans constructed 26 28 31 35 21 19 20 24 24 30 Feet of curb, gutter or sidewalks 6,385 28,459 9,500 35,411 16,305 26,553 18,056 27,000 19,902 25,909 Miles of road paved 15 19 15 23 39 43 27 21 21 15 Paved roads (miles) 900 930 921 995 1,024 1,038 1,043 1,070 1,073 1,081 Gravel roads (miles) 1,078 1,073 1,077 1,067 1,051 1,051 1,049 1,044 1,045 1,049 Self Insurance Fund Lawsuits/notice of claims 22 25 25 38 23 9 23 47 76 65 Litigations cost ($) 160,100 253,800 200,000 100,000 300,890 38,213 36,607 78,533 89,588 102,327 Property claims 78 105 90 41 36 47 53 88 43 52 Cost ($) 139,277 250,000 200,000 69,000 170,449 98,860 139,352 272,795 89,216 200,712 Liability claims 160 105 125 104 106 68 52 39 39 42 Cost ($) 378,988 253,800 250,000 43,813 83,185 96,678 58,109 376,721 750,157 82,377 Solid Waste Management Fund Household chemical waste programs - 2 4 1 1 1 1 1 12 15 Yard waste collection programs/days 52 52 52 57 52 52 51 52 352 351 Black Forest wildfire mitigation mulch programs 49 49 49 88 85 85 85 134 148 134 Economic Development Businesses certified (Enterprise Zone) 358 318 350 331 348 287 294 415 231 226 Contributions to Zone projects 654 1,061 1,110 1,538 1,548 1,635 2,084 2,192 2,352 2,637 Enterprise Zone Projects 25 36 40 52 49 50 52 47 49 53 Active affordable housing programs/projects 113 125 129 137 139 141 144 145 127 125 Community Development Block Grant projects - - - - 17 19 14 17 21 15 Human Resources Applications processed 17,572 14,918 15,500 13,128 15,218 12,061 13,463 17,174 20,979 22,327 Employee recognition awards 305 304 338 244 262 260 - - - -Data Source: El Paso County Budget Book and departmental data


Schedule 16 El Paso County Capital Asset Statistics by Function/Program Last Ten Fiscal Years

Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sheriff Patrol units and other vehicles 214 226 210 215 208 198 200 316 344 345 Department of Transportation Paved roads (miles) 900 930 921 995 1,024 1,038 1,043 1,070 1,073 1,081 Gravel roads (miles) 1,078 1,073 1,077 1,067 1,051 1,051 1,049 1,044 1,045 1,049 Miles of road graveled 80 66 50 13 39 21 28 16 8 21 Drainage crosspans constructed 26 28 31 35 21 19 20 24 24 30 Feet of curb, gutter or sidewalks 6,385 28,459 9,500 35,411 16,305 26,553 18,056 27,000 37,572 49,852 Parks Acres of Regional Parks, Recreation and conservation lands 5,500 5,900 6,900 7,100 7,044 7,044 6,585 6,585 6,585 7,900 Miles of Regional, Park & Nature Trails 85 87 93 85 92 92 101 101 101 102 County Office Sites (landscape

maintenance) 10 11 11 8 21 8 9 9 11 11 Facilities Number of buildings maintained 124 118 120 126 126 128 132 132 130 130 Square feet total maintained 2,414,566 2,343,423 2,124,011 2,235,781 2,236,000 2,241,501 2,949,191 3,164,503 3,164,384 3,131,918 County Fairgrounds Buildings 18 18 18 18 18 18 22 22 22 26 Stadium 1 1 1 1 1 1 1 1 1 1 Lighted outdoor dance floor 1 1 1 1 1 1 1 1 1 1 Outdoor arena 1 1 1 1 1 1 1 1 1 1 Indoor arena 1 1 1 1 1 1 1 1 1 1 Data Source: El Paso County Financial Capital Assets Records El Paso County Department of Transportation El Paso County Parks Department El Paso County Facilities